Follow Us on Google
From Ndubuisi Orji, Abuja
The Security and Exchange Commission (SEC), the Chartered Institute of Stock Brokers, as well as other critical stakeholders in the capital market have expressed support for a bill before the House of Representatives, seeking to prohibit Ponzi schemes in the country.
The stakeholders expressed support for the proposed legislation, which prescribes a 10- year jail term for operators and promoters of ponzi schemes, at a public hearing organised by the House Committee on Capital Market and Institutions, yesterday, in Abuja.
The proposed legislation has, as its long title, “a bill for an act to repeal the investment and security act, 2007 and enact the investments and securities bill to establish securities and exchange commission as the apex regulatory authority for the Nigerian capital market, as well as regulation of the market to ensure capital formation, the protection of investors, maintain fair, efficient and transparent market and reduction of systematic risk and for related matters.”
The Director General, SEC, Lamido Yuguda, while speaking at the public hearing, lauded the House for coming up with an amendment to the Investment and Security Act (ISA), stating that it would help remove ambiguity.
Yuguda noted that the commission observed areas in the existing act that needed to be reviewed, so as to enhance the competitiveness of the Nigerian capital market at the international scene.
Others who spoke at the public hearing included the President, Chartered Institute of Stock Brokers, Olawale Adeosun, Issuing Houses of Nigeria, Association of Security Dealers, amongst others.
(Continued on www.sunnewsonline.com)
Earlier, the Speaker, Femi Gbajabiamila, while declaring the hearing open, said there was a need to boost investor’s confidence in the capital market.
Gbajabiamila, who was represented by the Deputy House Leader, Peter Akpatason, said the country cannot afford to allow deficiencies in the system that would make investors worry about the safety of their investments.
“The need to ensure that the operations of the capital markets and the entire industry sector are sufficiently fair and transparent to ensure investor confidence is of particular concern. It is often said that capital is cowardly and will run at the slightest risk.
“In this new global economy, when investors have the option to quickly move money across industries, nations and continents, we cannot allow deficiencies in the system that cause investors to worry about the safety of their investments,” he stated.
