Nigeria’s Investments and Securities Act 2024: A New Era for the Capital Market

President Bola Tinubu has signed the Investments and Securities Act (ISA) 2024, repealing the previous 2007 version. This significant legislation strengthens investor protections, enhances SEC’s regulatory powers, and aligns Nigeria’s capital market with global practices. Notable provisions include the classification of exchanges, recognition of virtual assets as securities, and improved transparency measures in capital market transactions.

President Bola Tinubu has officially signed the Investments and Securities Act (ISA) 2024, which repeals the previous Act from 2007. This landmark legislation is designed to enhance the legal structure of the Nigerian capital market, fortifying investor protections while integrating important reforms aimed at fostering market integrity and sustainable growth.

The enactment of the ISA 2024 affirms the Securities and Exchange Commission’s (SEC) role as the principal regulatory body for Nigeria’s capital market. The new legislation also aligns Nigerian market practices with international standards, setting a foundation for improved operations in financial markets.

Dr. Emomotimi Agama, Director-General of SEC, praised the President’s signing of the ISA 2024 as a monumental step towards transforming the capital market. He indicated that the legislation reiterates a commitment to building a resilient and inclusive capital market that fosters innovation and energized investor protections, thereby attracting both local and foreign investments.

The SEC acknowledges the contributions of various stakeholders, including the National Assembly, for their efforts in enacting this significant framework. The lengthy deliberation and engagement throughout the legislative process showcase a unified resolve to boost economic growth and inspire investor confidence in Nigeria.

The ISA 2024 empowers SEC to develop evolving measures that align with global securities regulators’ benchmarks. Enhanced regulatory powers will help improve compliance with international standards, promoting the attractiveness of the Nigerian capital market on a global scale.

Key features of the Act include classifying securities exchanges into Composite and Non-composite categories, recognizing virtual assets as securities, and encompassing several financial market infrastructures under SEC’s regulatory umbrella. Additionally, the Act mandates a more structured approach to systemic risk management and introduces regulations on commodities exchanges.

New provisions aim to simplify regulations around fundraising, enhance transaction transparency through mandatory Legal Entity Identifiers (LEIs), and outlaw Ponzi schemes with severe penalties for offenders. The revisions made to the repealed Act also improve the operations of the Tribunal overseeing capital market disputes, contributing to a more efficient legal framework.

In summary, the adoption of the Investments and Securities Act 2024 marks a significant advancement in Nigeria’s capital market, emphasizing investor protection and alignment with global practices. The legislative changes aim to foster a robust economic environment conducive to both local and foreign investments, addressing previous regulatory gaps and improving transparency. By empowering the SEC and outlining clear operational regulations, the Act is positioned to facilitate sustainable growth in the financial sector.

Original Source: nannews.ng