SEC Moves to Strengthen Regulation of Nigeria’s Capital Market

The apex Regulator of the Nigerian capital market, the Securities and Exchange Commission (SEC), has released new rules and amendments to existing rules covering a wide range of areas including the much anticipated Rules on Securitization as well as Codes of Conduct for Rating Agencies, Underwriters and Trustees.

Also released are new rules in relation to trading in unlisted securities and the National Investor Protection Fund, which was recently set up by the Board of the SEC.

Additionally, important amendments have been released on various rules of the SEC including Rules on Mergers and Takeovers and utilization of offer proceeds amongst others.

The new rules will impact various aspects of the economy and national life. The Rules on Securitization will have a positive impact on housing and infrastructure finance while the Codes of Conduct will strengthen investor protection and improve market integrity.

The Rules on Trading in Unlisted Securities on the other hand will enable Nigerians to buy and sell securities of unquoted companies through an organized SEC-registered over-the-counter (OTC) market.