Senate Moves To Empower SEC Over Capital Market
•••Initiative Would Bring Market At Par With Global Standards
•By Our Reporter
ABUJA – The Senate on Tuesday passed for second reading, a bill seeking to repeal the Investments and Securities Bill Act 2007.
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Leading debate on the bill, the Co-Sponsor, Senator Osita Izunaso (APC Imo West), said that the bill seeks to repeal the Investments and Securities Act, 2007 and enact the Investments and Securities Act, 2024.
The legislation which was partly sponsored by the Leader of the Senate, Senator Opeyemi Bamidele, reads this; “A bill for an Act seeking to repeal the investment and securities Act 2007 and enact the investments and securities bill 2024 and to establish the securities and exchange commission as the apex regulatory authority for the Nigerian Capital Market as well as regulation of the market to ensure capital formation, the protection of investors, maintain fair, efficient and transparent market and reduction of systemic risk.”
He further noted that the main objective of the bill was to enact a legislation that aligned with global dynamics as they relate to the regulation of the capital market through provision of innovative regulatory framework that seeks to.
“The bill 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 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 repositioning this vital sector of our economy for national economic transformation.”
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Supporting the bill, Senator Tokunbo Abiru (APC, Lagos East) said that the bill would not only bring about discipline and improvement in the capital market, it would also enhance the capacity of the regulator.
On his part, Senator Isa Jibrin (APC, Kogi East) said, “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.”
In his remarks, the President of the Senate, Godswill Akpabio said that many individuals would be content to invest money in the capital market if they knew that a significant portion of the risk had been reduced. Subsequently, he referred the bill to the Senate Committee on Capital Market, asking them to report back on any new legislative moves within the next four weeks.