Senate gives SEC more regulatory powers, pass Bill on Investments and Securities for third reading

The Senate Wednesday passed for third reading , Investments and Securities (Repeal and Enactment) Bill 2024.

Passage of the bill for third reading by the Senate, followed consideration and adoption of recommendations made to that effect by its Committee on Capital Market, Chaired by Senator Osita Izunaso (APC Imo West).

The Committee in the report, informed the Senate that repeal and enactment bill , when signed into law , will make the Securities and Exchange Commission (SEC), the apex regulatory authority for the Nigerian Capital Market.

Objectives of the proposed law, as clearly stated in the bill, are strategically streamlined within the contemplation of emerging global best practices in Investments and Securities by protecting the integrity of the security market against all forms of market abuse and insider dealings , preventing unauthorized, illegal, unlawful, fraudulent and unfair trade practices, relating to securities and investments.

The report reads: “That the extant law as revolutionary as it was at its inception, after many years of its operation, requires systemic substantial updates to align with the evolving financial markets and regulatory frameworks globally, in order to make it more attractive to both local and foreign investors;

“That the enactment of this proposed legislation will undoubtedly provide significant opportunity to drive the growth of the capital market and diversification, thereby creating a conducive atmosphere for investors in the Nigerian Capital Market.

“That the Bill contemplates to address modern forms of financial malpractices and reinforce investors’ protection by engendering robust regulations around market abuses, insider trading and governance standards for publicly traded companies

“That the Bill envisages regulatory framework for digital currencies and fintech activities, including the supervision of blockchain and cryptocurrency transactions to support the integration of innovative technologies within the scope of the capital market.

“That the Bill seeks to set a clear-cut delineation of roles amongst regulatory bodies in order foster transparency and reduce regulatory overlap, thereby enhancing the operational efficiency of Nigeria’s Securities and Exchange Commission;

“That the Bill seeks to support the introduction and regulation of diversified financial instruments, including derivatives, Exchange Traded Funds (ETFs) and other sophisticated products, which are essential for meeting the needs of a broad investor base and increasing market depth; and

“That the passage of the Bill will bring about diversity and growth in the capital market, through market offerings that would form the foundation for economic expansion, thereby creating job opportunities within the Nigerian Capital Market”.

The Senate accordingly after clause by clause consideration of the bill , passed it for third reading .