5 Functions of the Securities and Exchange Commission

5 FUNCTIONS OF THE SECURITIES AND EXCHANGE COMMISSION is a public legal education topic. Chaman Law Firm explains the practical legal issues, documents, risks, and decision points readers should understand before acting.

This article is for general legal education only. It does not replace advice from a lawyer who has reviewed the facts, documents, deadlines, and applicable law.

FUNCTIONS OF THE SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission in Nigeria regulates the capital market and ensures that investors are protected. That means ensuring that processes increasingly get transparent and that transaction rules are complied with.

The Commission critically examines parties that apply to operate in the capital market as market operators and licenses those considered suitable. Such operators include: issuing houses, securities dealers/stockbrokers, sub-brokers, registrars, trustees, capital market consultants, reporting accountants, solicitors and investment advisers etc.

Securities for issue to the investing public are also scrutinized and registered by the Securities and Exchange Commission. A party intending an issue must apply to SEC for approval. These include: Equities/shares, debentures/industrial loans, government bonds and collective investment schemes.

It is the Security and Exchange Commission's responsibility to license transaction floors and exchanges, including: Securities Exchanges (like stock exchanges), Commodities Exchanges and Capital Trade Points, Futures, Options and Derivatives Exchanges as well as Depository, Clearing and Settlement agencies like the CSCS.

Major financial transactions like mergers, acquisitions, takeovers and other forms of business combinations must also have the blessing of the Securities and Exchange Commission.

SEC has a monitoring role over the capital market. That role is to ensure fair practices that will advance the market and attract more investment inflow. It extends to ensuring good corporate governance for the quoted companies which, among other things, have a responsibility to deliver timely and reliable reporting to the investing public.

NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com

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Direct answer

5 Functions of the Securities and Exchange Commission should be assessed under Nigerian law by checking the relevant documents, parties, deadlines, and practical risk before taking action. The safest next step depends on the facts and the documents available.

Key issues to review

Important issues usually include legal capacity, authority to act, documentary evidence, applicable procedure, limitation risk, remedies, and whether negotiation or formal proceedings are appropriate.

How Chaman Law Firm assists

Chaman Law Firm reviews the facts and documents, explains the legal risk in Nigeria, and helps clients choose a practical route through the relevant general issue.