By Capital Watch Media
In a major boost to the regulations and operations in Nigeria’s capital market the Investments and Securities Bill 2024 has scaled the second reading at the Senate of the Federal Republic of Nigeria has passed.
The bill was meant to repeal the Securities and Exchange Commission (SEC) Act, currently in force.
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, when passed into law, is capable of transforming the capital market, encourage the influx of foreign investors as well as boost investors’ confidence, among others.
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.
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.”
President of the Senate, Godswill Akpabio said a lot of people would be happy to infuse funds into the capital market when they know a lot of the risk has been minimised.
He thereafter referred the bill to the Senate Committee on Capital Market for further legislative actions.
Speaking recently, Director General of the SEC, Dr. Emomotimi Agama, said the Bill is pushing for harsher penalties on Ponzi scheme operators through the proposed Investments and Securities Bill (ISB) 2024, which mandates a minimum fine of N20 million or up to 10 years in prison, or both.
Agama explained that the bill explicitly prohibits Ponzi and pyramid schemes, fortifying protections for investors against illegal fund managers adding that it aims to shield Nigerian investors from fraudulent schemes and enhance the capital market’s global competitiveness.
A notable amendment in the Bill would allow the Investor Protection Fund (IPF), established by securities exchanges, to cover investor losses linked to the deregistration of brokerage firms, extending beyond the current coverage of bankruptcy or negligence cases.
