Investment and Securities Bill 2024 Scales Third Reading, Nears Assent

The Investments and Securities Bill 2024 has been passed by the Senate after it scaled the third reading at the upper chamber of the National Assembly.

The bill aims to protect investors at the Nigerian capital market as it blocks different forms of abuse, insider dealings, preventing unauthorised, illegal, unlawful, fraudulent and unfair trade practices relating to securities and investments.

When the bill is signed into law and becomes an act and repeal the existing Investments and Securities Act 2007.

The chairman of the Senate Committee on Capital Market, Mr Osita Izunaso, while presenting the bill to the parliament, disclosed that the repeal and enactment bill, when signed into law by the President, would further strengthen the Securities and Exchange Commission (SEC).

He also said it would sanitise the investment landscape in the country, making it better and more transparent.

According to him, the bill will “undoubtedly provide a significant opportunity to drive the growth of the capital market and diversification, thereby creating a conducive atmosphere for investors in the Nigerian capital market.”

In addition, it will “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.”

He further said 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.”

“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;

“It 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,” he added.