Capital Market Regulation Receives Major Boost as Senate Passes ISB 2023

Kayode Tokede

The capital market regulation has received a major boost as the Senate passed into law, the Investments and Securities Bill (ISB) 2023.

The Bill, which is expected to aid the functioning of the capital market and facilitate the ongoing economic diversification in the country among others, had been passed by the House of Representatives last December.

During plenary, Senate President Ahmad Lawan while announcing the passage of the Bill, stated that, it is expected to protect investors, adequately regulate the market to reduce systemic risks as well as provide for more stringent punishment for operators of Ponzi schemes.

According to him, “The Bill for an Act to repeal the Investments and Securities Act 2007 Act No. 29 2007 and enact the Investments and Securities Bill 2023 to service the SEC as the apex regulatory authority for the Nigerian capital market as well as regulation of market to ensure capital formation, to protect investors, maintain fair, efficient and transparent market and reduction of systemic risk and for related matters is hereby passed.

Chairman of the House Committee on Capital Markets and Institutions, Babangida Ibrahim had recently stated that the ISB is capable of transforming the capital market, encourage the influx of foreign investors as well as boost investors’ confidence, among others.

Ibrahim said: “the Bill seeks to repeal the existing Investments and Securities Act 2007 and to establish a new market infrastructure and wide ranging system of regulation of investments and securities businesses in Nigeria especially in the areas of derivatives, systematic risk management, financial market infrastructure and Ponzi scheme and platforms.”

Speaking on some highlights of the major innovations and changes in the Bill, Mr. Lamido Yuguda disclosed that it expands the categories of issuers as a key step towards the introduction of innovations and offerings such as crowd-funding as well as the facilitation of “commercial and investment business activities.”