Receiving a legal notice from a government enforcement agency like the Enforcement Directorate (ED), Serious Fraud Investigation Office (SFIO), or Securities and Exchange Board of India (SEBI) can feel intimidating. These agencies deal with serious financial and corporate investigations, and how you respond in the first 24–72 hours can dramatically affect the outcome of your case.
As someone who routinely advises individuals and businesses facing high-stakes regulatory scrutiny, here’s my clear, lawyer-approved roadmap for what you should do—and what you absolutely shouldn’t.
⚠️ Who Are These Agencies?
- ED: Investigates money laundering and foreign exchange violations under PMLA & FEMA
- SFIO: Handles complex corporate frauds and white-collar crimes
- SEBI: Regulates capital markets and investigates insider trading, market manipulation, and IPO violations
📬 Step-by-Step: What to Do If You Receive a Notice
✅ Step 1: Don’t Panic or Ignore It
Even if you believe you’ve done nothing wrong, ignoring a statutory notice may lead to adverse action—such as freezing of bank accounts, arrest, or company raids.
âś… Step 2: Understand the Nature of the Notice
Each notice has legal backing. It could be:
- A summons for personal appearance
- A demand to furnish documents or records
- A show-cause notice before prosecution
Read the sections cited—PMLA, FEMA, SEBI Act, Companies Act—and note the timeline for response.
âś… Step 3: Engage Legal Counsel Immediately
An experienced regulatory or white-collar crime lawyer will:
- Review the notice for scope and legality
- Prepare a compliant but strategic response
- Appear on your behalf, if needed
- Ensure you don’t self-incriminate during questioning
âś… Step 4: Preserve All Documents
Gather all contracts, financial records, digital communications, and filings related to the issue. Ensure nothing is deleted or altered—tampering can backfire.
âś… Step 5: File a Response Within the Deadline
Your lawyer will help you file a legally sound reply. Missing deadlines can lead to assumptions of guilt or non-cooperation.
đźš« What NOT to Do
- ❌ Don’t send casual, unvetted responses
- ❌ Don’t speak to the media or share notice details publicly
- ❌ Don’t contact enforcement officers directly without legal representation
- ❌ Don’t tamper with documents or try to “settle” informally
👩‍⚖️ Advocate’s Insight
“A regulatory notice is not a conviction—it’s an opportunity to clarify, cooperate, and protect your legal position. But only if you respond with precision. I’ve seen businesses suffer not because they were guilty, but because they were unprepared.”
— Advocate Priyanshi Jha
âť“ Frequently Asked Questions (FAQs)
🔸 Q1: Is appearing before ED or SFIO mandatory?
A: Yes. Ignoring a summons can result in legal penalties, arrest, or non-bailable warrants.
🔸 Q2: Can I send someone on my behalf?
A: In some cases, especially for document submission, authorized representatives may appear. For statements or depositions, personal presence is often required.
🔸 Q3: Can I get a copy of the complaint or investigation file?
A: Not always. Agencies may not disclose the entire case file at the notice stage. However, your lawyer can request relevant documents.
🔸 Q4: What are the penalties for non-compliance?
A: Penalties vary—ranging from fines and freezing of assets to arrest and prosecution under PMLA, SEBI Act, or Companies Act.
đź“ž Facing an ED, SEBI, or SFIO Notice?
Early legal intervention can protect you from reputational harm, business disruption, and procedural missteps. I offer confidential legal reviews, representation, and response drafting for clients facing regulatory heat.
