Overview

The Investments and Securities Act, 2007 is a Nigerian federal legislation that establishes the Securities and Exchange Commission (SEC) and provides a comprehensive regulatory framework for the capital market. The Act repeals the previous Investments and Securities Act of 1999 and expands the powers and functions of the Commission. It introduces new market infrastructures and a wide-ranging system of regulation for investment and securities business, with particular emphasis on mergers, acquisitions, take-overs, and collective investment schemes. The Act is divided into multiple parts covering the establishment and management of the SEC (Part I), its functions and powers (Part II), staff provisions (Part III), financial provisions (Part IV), registration and regulation of securities exchanges and self-regulatory organizations (Part V), registration and regulation of capital market operators (Part VI), and inspections and investigations (Part VII). Key provisions include the composition of the SEC board, duties of the board, appointment and tenure of members, financial management, reserve accounts, borrowing powers, conditions for registration of securities exchanges, capital trade points, and self-regulatory organizations, as well as rules for capital market operators including accounting and trust account requirements. The Act also provides for disciplinary actions, inspections, and powers to revoke registrations or apply to court for winding up.

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