President Bola Tinubu has signed the Investments and Securities Act (ISA) 2024, which improves Nigeria’s capital market framework. The legislation enhances investor protection, aligns market operations with international best practices, and empowers the Securities and Exchange Commission (SEC). Key provisions include the classification of Exchanges, the regulation of digital assets, and prohibitions against fraudulent investment schemes.
President Bola Tinubu has officially signed the Investments and Securities Act (ISA) 2024 into law, which repeals the previous statute from 2007. This significant legislation is poised to enhance the legal framework of Nigeria’s capital market while bolstering investor protection. Furthermore, it establishes essential reforms aimed at promoting market integrity, transparency, and sustainable growth within the sector.
The Securities and Exchange Commission (SEC) has confirmed that the enactment of ISA 2024 reinforces SEC’s role as the principal regulatory body overseeing the Nigerian Capital Market. The new Act introduces transformative provisions that aim to align Nigeria’s market operations with international best practices, thus upgrading its global competitiveness.
Dr. Emomotimi Agama, SEC’s Director-General, praised the President’s approval as a monumental advancement for the capital market. He remarked that the ISA 2024 embodies their dedication to developing a dynamic, inclusive, and resilient capital market. This Act empowers SEC to address regulatory deficiencies and foster innovation, ultimately protecting investors more effectively.
The SEC worked diligently with various stakeholders, including the National Assembly, to ensure the successful implementation of this act. The extensive discussions and bipartisan support throughout the legislative process reflect a commitment to enhancing economic growth and investor confidence within Nigeria.
Additionally, the ISA 2024 enhances SEC’s regulatory powers, making them comparable to leading global securities regulators, thereby retaining its “Signatory A” status in line with IOSCO’s Enhanced Multilateral Memorandum of Understanding. This advancement ensures the Nigerian capital market remains attractive to both local and foreign investors.
Notable aspects of the ISA 2024 include the classification of Securities Exchanges into Composite and Non-composite categories, the incorporation of Financial Market Infrastructures, and the regulation of virtual/digital assets. Furthermore, the act outlines provisions to manage systemic risk and introduces mandatory Legal Entity Identifiers (LEIs) to enhance transaction transparency.
The law explicitly prohibits fraudulent investment schemes, enforcing stringent penalties for promoters of such activities. Additionally, the Act revises key provisions regarding the Tribunal that oversees these regulations, aiming to optimize its operations and efficacy for better governance in the capital market.
In conclusion, the signing of the Investments and Securities Act 2024 marks a pivotal development in enhancing Nigeria’s capital market framework. This legislation not only strengthens regulatory oversight and investor protections but also aligns the nation’s practices with global standards. Moreover, it creates a more dynamic and inclusive market environment, fostering economic growth through enhanced collaboration among stakeholders. Achieving these ambitious goals will require continued commitment and cooperation among all involved parties.
Original Source: nannews.ng
