By Newsshelve Correspondent.
In a significant move to bolster the Nigerian capital market, the Senate has passed the Investments and Securities Bill 2024.
This notable legislation aims to enhance market regulation, protect investors, and attract foreign investments.
According to Senate Chief Whip, Tahir Monguno, the bill will safeguard investors and eliminate fraudulent dealings in the capital market.
Chairman of the Senate Committee on Capital Market, Osita Izunaso, emphasized that the bill will transform the capital market, encourage foreign investment, and boost investor confidence.
The bill seeks to repeal the existing Securities and Exchange Commission Act, establishing a new market infrastructure and regulatory framework.
It explicitly prohibits Ponzi and pyramid schemes, fortifying protections for investors against illegal fund managers.
The bill also mandates a minimum fine of N20 million or up to 10 years in prison, or both, for Ponzi scheme operators.
The bill allows the Investor Protection Fund to cover investor losses linked to the deregistration of brokerage firms, extending beyond the current coverage of bankruptcy or negligence cases.
The passage of the bill is expected to have a positive impact on the Nigerian capital market.
According to Director General of the SEC, Dr. Emomotimi Agama, the bill’s passage would be pivotal in setting Nigeria on the path to a world-class capital market.
The bill introduces regulatory frameworks for Commodity Exchanges and Warehouse Receipts, essential steps for developing Nigeria’s commodities sector.
The passage of the Investments and Securities Bill 2024 is a significant milestone in the development of the Nigerian capital market.
The bill’s provisions aim to protect investors, enhance market regulation, and attract foreign investments, ultimately contributing to the growth and development of the Nigerian economy.
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