Senate Advances Investment & Securities Bill 2024: Boost for Nigeria’s Capital Market
Senate Advances Investment & Securities Bill 2024: Boost for Nigeria’s Capital Market
Detailed Breakdown
Key Highlights from the Bill’s Second Reading
• The Investments and Securities Bill (ISB) 2024 successfully scaled its second reading in the Senate, marking a significant milestone in Nigeria’s financial regulations.
• Once enacted, this bill will repeal the Securities and Exchange Commission (SEC) Act currently in force.
Core Objectives of the Bill
1. Investor Protection:
• The bill aims to safeguard investors from fraudulent schemes, such as Ponzi and pyramid schemes.
• A minimum fine of NGN 20 million or a 10-year prison term (or both) is proposed for operators of illegal schemes.
2. Enhanced Market Integrity:
• Prevent insider trading, unauthorized practices, and other forms of market abuse.
• Strengthen the Investor Protection Fund (IPF) to cover losses linked to deregistered brokerage firms, extending its scope beyond bankruptcy and negligence cases.
3. Global Competitiveness:
• Align Nigeria’s capital market regulations with global standards to attract foreign investors and boost confidence in the market.
Senate Contributions
• Senator Osita Izunaso (Chairman, Senate Committee on Capital Market):
• Highlighted that the bill would transform the market, improve investor confidence, and encourage the influx of foreign investments.
• Senator Tahir Monguno (Senate Chief Whip):
• Emphasized the bill’s role in eliminating fraudulent dealings and protecting investors.
• Senators Isa Jibrin and Adetokunbo Abiru:
• Stressed the need for SEC to operate in line with global best practices, ensuring effective market regulation.
Senate President’s Remarks
• Senator Godswill Akpabio noted that minimizing risks in the capital market would attract more participants and funds, fostering growth.
Next Steps
• The bill has been referred to the Senate Committee on Capital Market for further legislative review.
Implications for the Market
Stronger Protections: Investors can expect reduced exposure to fraud and illegal activities.
Global Appeal: Clearer and stricter regulations could make Nigeria’s capital market more attractive internationally.
Growth Potential: Encouraging foreign investment could significantly boost the market’s liquidity and development.
This development is a game-changer for Nigeria’s financial landscape, offering a pathway to a safer, more robust, and globally aligned capital market.
Detailed Breakdown
Key Highlights from the Bill’s Second Reading
• The Investments and Securities Bill (ISB) 2024 successfully scaled its second reading in the Senate, marking a significant milestone in Nigeria’s financial regulations.
• Once enacted, this bill will repeal the Securities and Exchange Commission (SEC) Act currently in force.
Core Objectives of the Bill
1. Investor Protection:
• The bill aims to safeguard investors from fraudulent schemes, such as Ponzi and pyramid schemes.
• A minimum fine of NGN 20 million or a 10-year prison term (or both) is proposed for operators of illegal schemes.
2. Enhanced Market Integrity:
• Prevent insider trading, unauthorized practices, and other forms of market abuse.
• Strengthen the Investor Protection Fund (IPF) to cover losses linked to deregistered brokerage firms, extending its scope beyond bankruptcy and negligence cases.
3. Global Competitiveness:
• Align Nigeria’s capital market regulations with global standards to attract foreign investors and boost confidence in the market.
Senate Contributions
• Senator Osita Izunaso (Chairman, Senate Committee on Capital Market):
• Highlighted that the bill would transform the market, improve investor confidence, and encourage the influx of foreign investments.
• Senator Tahir Monguno (Senate Chief Whip):
• Emphasized the bill’s role in eliminating fraudulent dealings and protecting investors.
• Senators Isa Jibrin and Adetokunbo Abiru:
• Stressed the need for SEC to operate in line with global best practices, ensuring effective market regulation.
Senate President’s Remarks
• Senator Godswill Akpabio noted that minimizing risks in the capital market would attract more participants and funds, fostering growth.
Next Steps
• The bill has been referred to the Senate Committee on Capital Market for further legislative review.
Implications for the Market
Stronger Protections: Investors can expect reduced exposure to fraud and illegal activities.
Global Appeal: Clearer and stricter regulations could make Nigeria’s capital market more attractive internationally.
Growth Potential: Encouraging foreign investment could significantly boost the market’s liquidity and development.
This development is a game-changer for Nigeria’s financial landscape, offering a pathway to a safer, more robust, and globally aligned capital market.
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