Investments and Securities Act, 2007
The Investments and Securities Act establishes the Securities and Exchange Commission (SEC) as the apex regulator of Nigeria’s capital market. Enacted in 2007, it governs the regulation of securities, investment schemes, capital market operators, and commodity exchanges. The Act provides for the registration and regulation of securities offerings, market operators, and collective investment schemes.
Legal area: Law regulating the issuance, trading, and regulation of securities and capital markets.
Year enacted: 2007
Full text: https://lawsofnigeria.placng.org/laws/investments-and-securities-act.html
Key Provisions
- Part II: Establishment of the Securities and Exchange Commission
- Part III: Registration and regulation of securities exchanges and market operators
- Part IV: Public offering of securities and disclosure requirements
- Part V: Regulation of collective investment schemes
- Section 34: Registration of securities
- Section 72: Prohibition of market manipulation and insider trading
Significance
The Act provides the legal foundation for Nigeria’s capital market regulation. The SEC, established under this Act, oversees the Nigerian Stock Exchange and all capital market activities. The Act has been amended to address emerging market developments including fintech and digital assets.