COMFORT EKELEME, Business Editor
In a major boost to the operations of the Securities and Exchange Commission (SEC) and the Nigerian capital market, the Senate has passed the Investments and Securities Bill 2024.
The Investments and Securities Bill, meant to repeal SEC Act, scaled second reading on the floor of the Senate Wednesday.
During the consideration of the report on the Bill from the committee on Capital Market, Senate Chief Whip, Tahir Monguno stated that it will protect investors and eliminate fraudulent dealings in the capital market.
Leading the debate, Chairman of the Senate Committee on Capital Market, Senator Osita Izunaso said the bill sought to repeal the Investments and Securities Act, of 2007 and enact the Investments and Securities Act, 2024 stating that the ISB is capable of transforming the capital market, encourage the influx of foreign investors as well as boost investors’ confidence, among others.
Izunaso said, “The Bill seeks to repeal the existing Investments and Securities Act 2007, and to establish a new market infrastructure and wide-ranging system of regulation of investments and securities businesses in Nigeria especially in the areas of derivatives, systematic risk management, financial market infrastructure and Ponzi scheme and platforms.
“It was meant to establish the Securities and Exchange Commission as the apex regulatory authority for the Nigerian Capital Market. It will be a regulation of the Market to ensure capital formation, the protection of investors, maintenance of fair, efficient and transparent market, and reduction of systemic risk,” he said.
Izunaso further said the main objective of the bill was to enact legislation that aligned with global dynamics as they relate to the regulation of capital market through the provision of an innovative regulatory framework.
“It will protect the integrity of the security market against all forms of market abuse and insider dealing. It will prevent unauthorised, illegal, unlawful, fraudulent and unfair trade practices, relating to securities and investments,” he added.
He said that the overriding purpose of the proposed legislation was to strengthen the capacity of the Commission for the effective performance of its statutory mandate as well as reposition that vital sector of the economy for national economic transformation.
The bill was also supported by Senators Isa Jibrin (APC-Kogi) and Sen. Adetokunbo Abiru (APC-Lagos).
According to Jibrin, “We have been having problems in terms of definite assignments that the Securities and Exchange Commission (SEC) is supposed to carry to ensure that the Nigerian Capital Market functions effectively.
“This amendment is very important to ensure that SEC does its job in line with the global best practice,” he said.
