Senate passes investments, securities invoice for third studying

The Senate permitted the Investments and Securities (Repeal and Enactment) Invoice 2024 for its third studying on Wednesday.

The passage adopted the consideration and adoption of suggestions offered by the Senate Committee on Capital Market, chaired by Senator Osita Izunaso (APC, Imo West).

Based on the committee’s report, the invoice, as soon as enacted, will designate the Securities and Trade Fee because the apex regulatory authority for Nigeria’s Capital Market.

The proposed laws is designed to align with world finest practices in investments and securities. Its targets embody safeguarding the integrity of the securities market, stopping market abuse, insider buying and selling, and different fraudulent commerce practices whereas guaranteeing truthful and lawful operations.

The committee’s report said, “Regardless of its revolutionary impression at inception, the prevailing legislation now requires substantial updates to maintain tempo with the evolving monetary markets and world regulatory frameworks, thereby making it extra interesting to native and worldwide buyers.

“The proposed laws will foster vital development within the capital market, drive diversification, and create a conducive setting for buyers in Nigeria’s capital market.

“It goals to handle fashionable monetary malpractices, reinforce investor safety by way of strong laws in opposition to market abuse, and insider buying and selling, and improve governance requirements for publicly traded firms.”

The invoice additionally proposes a regulatory framework for digital currencies and fintech actions, together with oversight of blockchain and cryptocurrency transactions, to combine progressive applied sciences into the capital market.

Additional provisions embody a transparent delineation of roles amongst regulatory our bodies to reinforce transparency and scale back overlaps, thereby bettering the SEC’s operational effectivity.

Help for the introduction and regulation of diversified monetary devices reminiscent of derivatives, Trade Traded Funds, and different superior merchandise to deepen the market and meet various investor wants.

Measures to drive development and diversification within the capital market, contributing to financial growth and job creation.

Following a clause-by-clause consideration, the Senate handed the invoice for a 3rd studying.