Securities and Exchange Commission (SEC), Nigeria is the apex regulatory institution of the Nigerian capital market supervised by the Federal Ministry of Finance.
The Commission has evolved over time having started with the establishment of the Capital Issues Committee in 1962 by the government as an essential arm of the Central Bank of Nigeria. This was purely an ad-hoc, non-statutory committee, which later metamorphosed into SEC in 1978, following a comprehensive review of the Nigerian financial system, with the promulgation of SEC Decree No. 71 of 1979. Successive reviews of this earlier enactment led to the introduction of a new legislation, the Investments and Securities Act (ISA) No 45 of 1999.
Securities and Exchange Commission Decree No. 71 of 1979 was promulgated, effective retrospectively April 1, 1978, thus establishing the Commission and vesting wider power on it to regulate and develop the Nigerian capital market, in addition to determining the prices of issues and setting the basis of allotment of securities. Unlike its two predecessors, the Commission at this stage was excised from the CBN, although it continued to receive further funding from the apex bank.
It also had an enlarged 12-member board with a CBN representative as its chairman. Other members were drawn from the Ministries of Finance, Trade and Industries, The Nigerian Stock Exchange and the Nigerian Enterprises Promotion Board; Other members were nominated on basis of personal merit.
The Commission however took off effectively on January 1 1980 with a staff of 51, (7) of them were on secondment (for a period of three years) from the Central Bank of Nigeria (CBN) while service staff were newly recruited.
Nine years after the establishment of the Securities and Exchange Commission, the enabling law, Decree No. 7 of 1979 was re-enacted as SEC Decree No. 29 of 1988 with additional provisions to address observed lapses in the previous arrangement and to enable the Commission pursue its functions more effectively.
Functions
The Securities and Exchange Commission is a government agency mandated to regulate and develop the Nigerian capital market.
(I) In regulating the market, the Commission undertakes the following activities meant to protect investors, market operators and also ensures that market integrity is maintained:
A. Registration of securities and market intermediaries to ensure that only fit and proper persons/institutions are allowed to operate in the market such as:-
Market Places
Securities/Commodities Exchanges/Capital Trade Points
Futures, Options and Derivatives Exchanges
Depository , Clearing and Settlement agencies
Capital Market Operators:
Issuing Houses
Securities dealers/Stock brokers/Sub- brokers
Registrars/Transfer agents
Trustees
Capital Market Consultants
Reporting Accountants
Solicitors
Investment Advisers etc.
Securities:
Equities/shares
Debentures/Industrial Loans
Government bonds
Collective investment schemes
B. Surveillance over the exchanges and trading systems in order to forestall breaches of market rules as well as to deter and detect unfair manipulations and trading practices to prevent market disruption.
C. Investigation of alleged breaches of the laws and regulations governing the capital market and enforcement of sanctions where appropriate.
Contact Details
Tel: 234-9-6330000 234-9-6330399
Email: sec@sec.gov.ng
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