The Securities and Exchange Commission, SEC is a government agency mandated to regulate and develop the Nigerian capital market.

Market Regulation

In regulating the market, the Commission undertakes the following activities in order to protect investors, market operators and also ensure market integrity.  Regulation is carried out through deployment of the following tools:

• Registration of securities and market intermediaries to ensure that only fit and proper persons / institutions are allowed to operate in the market.  Instruments and persons registered in the market are:
  
  • Securities/Commodity Exchanges/Capital Trade Points
  • Futures, Options and Derivatives Exchanges
  • Depository, Clearing and Settlement agencies
  • Capital Market Operators:
    • Issuing Houses
    • Securities dealers/Stock brokers/Sub- brokers
    • Registrars/Transfer agents
    • Trustees
    • Reporting Accountants
    • Solicitors
    • Investment Advisers etc.
  • Securities:
    • Equities
    • Debentures
    • Debt instruments
  • Collective investment schemes

• Inspection either done “onsite” or “off-site”.  The Commission, at regular intervals, calls for information from capital market operators. It also undertakes and conducts inquiries and audits of any participant in the market whenever necessary.

• Surveillance is carried out over exchanges and trading systems to forestall breaches of market rules as well as deter and detect manipulations and trading practices which are capable of causing market disruption.

• Investigation of alleged breaches of the laws and regulations governing the capital market and enforcement of sanctions where appropriate.

• Enforcement actions are taken against market operators who are found wanting after investigation is carried out, in minor cases, an all parties meeting is convened by the Commission where it mediates between parties involved in a dispute.  However, if the case is serious or where no resolution is reached or a party fails to comply with a directive given at the all parties meeting, the defaulting party will be called before the Administrative Proceedings Committee (APC), which is a quasi judicial court, with only civil jurisdiction.    Appeals against decisions of the APC are usually made at the Investment and Securities Tribunal (IST).  Enforcement action may be in the form of payment of fine, ban, suspension or even forwarding the case to the Nigeria Police Force (NPF), Economic and Financial Crimes Commission (EFCC) or the Attorney - General of the Federation (AGF) where allegations are found to be criminal in nature.

• Rule making by the Commission as developments occur.  This is to ensure that the Commission meets up with international best practices.

Market Development

In the area of market development, the Commission collaborates with relevant stakeholders to introduce new products and processes.  The SEC encourages improved investor participation in the market through any or a combination of the following activities:

• Workshops and seminars
• Town hall meetings
• Television/Radio programmes
• Introduction of e-processes e.g. e-dividend, e- allotment, etc
• Secondary school quiz and essay competitions
• Introduction of capital market studies in tertiary institutions 
• Publications (i.e. Journals, bulletins and cartoons)