Capital Market and the Investment Security Act Bill

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The Problem Statement

Sequel to the contemplation of the superior court to resolve securities disputes and the creation of the Investment and Securities Tribunal, it shows the uncertainty in the investment and securities Act 2007 which makes the judicial structure of the investment and securities tribunal snare the executive rather than the judiciary.

This amount to contending decisions from the superior courts and legislative house of the National Assembly thereby weakens the integrity and confidence of investors.

The Policy Solution

The Investments and Securities Act was passed into law in June 2007. The Act was enacted to annul the Investments and Securities Act 1999 and to establish the Securities and Exchange Commission (SEC) as the apex regulatory authority for the Nigerian capital market as well as regulation of the market to ensure the protection of investors as well as maintain fair, efficient and transparent market and the reduction of systemic risk.

The ISA oversees the registration and regulation of the sale of securities; securities exchange, capital trade points and other self-regulatory organizations, registration and regulation of capital market operators, collective investment schemes and corporate restructuring.

Hence, all foreign investors investing in securities of Nigerian companies-except those of private companies are expected to register with the commission. This bill is more robust in relation to competition consideration as it new provisions seeks to implement changes that will provide a conducive environment for investment in Nigeria and to make its capital market conform to international best practices upon presidential approval.

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NIGAC Constructive Position/Take

The Investment and Securities Act is a Nigerian Law that providesĀ a set of new market infrastructures and wide-ranging system for the regulation of investment and securities business in Nigeria.

The act provides for a set of new market infrastructures and wide-ranging system of regulation of investment and securities business in Nigeria, especially in the area of Mergers, Acquisitions and Take-Over, and collective Investment Schemes, where new provisions were made.

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