Need to devise stricter norms to check corporate fraud: study

The government should devise more stringent norms to check corporate fraud in the country, a joint study released by industry chamber Assocham and consultancy firm Ernst & Young said.

"Individual efforts of corporate India to deal with risks of fraud require support of the government," the study said.

The role of the government, it said, acquires more significance when a firm is the fraud-perpetrating entity and not a victim.

India has framed several laws, regulations and guidelines providing preventive and curative measures to address the burgeoning number of such frauds in the country, the study said.

Several of these, however, only came after incidents of fraud and financial crimes were brought to light, or as a reaction to regulatory developments in US or European markets, it added.

The study said the Serious Fraud Investigation Office (SFIO) has handled nearly 64 cases of fraud over the four-year period since commencement of operations.

The SFIO, under the Ministry of Corporate Affairs, is a multi-disciplinary organisation with experts from the fields of investigation, finance, capital market, forensic audit, company law and customs.