ABUJA-NIGERIA, President Ahmed Bola Tinubu has approved the amended Investment and Securities Act, ISA, 2024.
The Securities and Exchange Commission, SEC, which disclosed this said: โThis landmark legislation strengthens the legal framework of the Nigerian capital market, enhances investor protection, and introduces critical reforms to promote market integrity, transparency, and sustainable growth.
โThe new Act also introduces transformative provisions to further align Nigeriaโs market operations with international best practiceโ.
Key highlights
The Act enhances the regulatory powers of the SEC in a manner comparable with benchmark global securities regulators. These enhanced powers and functions ensure full conformity with the requirements of IOSCOโs Enhanced Multilateral Memorandum of Understanding (EMMoU), enabling the SEC retain its โSignatory Aโ status and enhancing the overall attractiveness of the Nigerian capital marketโ.
Other notable provisions of the ISA 2024 include: Classification of Exchanges and inclusion of provisions on Financial Market Infrastructures- The Act classifies Securities Exchanges into Composite and Non-composite Exchanges. A Composite Exchange is one in which all categories of securities and products can be listed and traded, while a Non-composite Exchange focuses on a singular type of security or product. There are also new provisions on Financial Market Infrastructures such as Central Counter Parties, Clearing Houses and Trade Depositories.
Commenting on this milestone, the Director-General of the SEC, Dr. Emomotimi Agama, lauded the Presidentโs assent as a transformative step for the capital market and stated: โThe ISA 2024 reflects our commitment to building a dynamic, inclusive, and resilient capital market. By addressing regulatory gaps and introducing forward-looking provisions, the new Act empowers the SEC to foster innovation, protect investors more efficiently and reposition Nigeria as a competitive destination for local and foreign investmentsโ.
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