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8 Functions Of Nigeria Security And Exchange Commission

The Nigeria’s Capital market is regulated by the Nigeria Security and Exchange Commission. As  the highest regulatory body that regulates the activities of the Nigeria’s capital market, the Nigeria Security and Exchange Commission is working under the supervision of the federal Ministry of Finance.

Therefore, every operation of the Nigeria’s capital market is regulated by the Nigeria Security and Exchange Commission, as well as all its transactions for the purpose of ensuring that there is absolute compliance to all the relevant rules.

Any time there is capital mobilization or capital formation, the aim is to ensure that the economy is developed, since such business is aiming at ensuring economic development, it therefore, become obvious why nations are interested in building or developing their capital market.

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8 Functions Of Nigeria Security And Exchange Commission
Nigeria Security And Exchange Commission – Photo Source: https://nigeriacommunicationsweek.com.ng

Functions Of Nigeria Security And Exchange Commission

The Nigeria Security and Exchange Commission is saddled with enormous responsibilities and some of which would be discussed in this article. Most of the Nigeria Security and Exchange Commission responsibilities and the expected functions are below:

1. Regulations Of Capital Market

The Nigeria Securities and Exchange Commission, saddled with enormous responsibilities as stated earlier, some of which is responsibility of regulating the Nigeria’s capital market, one of the significant of the Nigeria Security and Exchange Commission in the regulation of the Nigeria’s capital market is to ensure the protection of investors, because if investors are not protected, it therefore, means that there will be no investment, and if there is no investment, it means there would be no business, so the protection of investors is very vital in that, it will ensure that, there is transparency in transaction processes, as well as total compliance to the rules that regulates the business.

Read Also: How To Register And Run A Private Security Company In Nigeria

2. Scrutinizes Applications To Capital Market

Another function of the Nigeria Security and Exchange Commission is in the area of scrutinizes all applications that come into the Nigeria’s capital market.

You know, there are parties who apply  for some operations at the Nigeria’s capital market with intent of serving as capital market operators.

Any time there are such applications, it is incumbent on the Nigeria Security and Exchange Commission to assess such applications and then give due approval where necessary. This comes by way of licensing any application they considered suitable.

And these operators in the Nigeria’s capital market varies but not limited to issuing houses, and securities dealers and stockbrokers, and sub-brokers, and registrars, and trustees,  and capital market consultants, including reporting accountants, solicitors as well as investment advisers among others.

3. Scrutinizes Security Issues To Investing Public

Every security that has to do with the investing public has to  passed through the scrutiny of the Nigeria Security and Exchange Commission.

The Commission also has the responsibility of making sure that every finding made is registered. Any party that has any intention of an issue must put in its application to the Nigeria Security and Exchange Commission for approval.

And some of these issues include, securities for investment and equities and shares, and debentures and industrial loans, and government bonds as well as, collective investment schemes.

4. Licenses Of Transaction Floors And Exchanges

The Nigeria Security and Exchange Commission is known for  licensing transaction floors as well as that of exchanges, some of which the Nigeria Security and Exchange Commission licenses include securities exchange, which could be stock exchanges, and commodities and exchanges, as well as capital trade points. Others include, derivatives exchanges together with depository and  clearing and other settlement agencies.

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5. Transacts Mergers, Acquisitions, Takeovers

Another of the Nigeria Security and Exchange Commission function is that of spearheaded over the activities of merging companies, taking over companies, as well as acquiring companies.

So any time there is issues that have to do with financial transactions such as mergers, and acquisitions, and takeovers, it is the function of the Nigeria Security and Exchange Commission to ensure efficiency transactions.

Besides any other type of business that has to do with combinations must definitely attracts the input of the Nigeria Securities and Exchange Commission.

6. Monitor Capital Market

The Nigeria Security and Exchange Commission is not only regulates the Nigeria’s capital market, but also monitor the activities of the Nigeria’s capital market.

It is the function of the Nigeria Security and Exchange Commission to ensure that there is absolute transparency and fair practices in the Nigeria’s capital market, for the purpose of ensuring that there is advancement in the Nigeria’s capital market, such that would attract investors to invest, and more of such investment flow.

This function of the Nigeria Security and Exchange Commission ensures corporate governance that is considered suitable, good and efficient.

And this positively affected quoted companies which, in their duties have the rights to ensure timely delivery of reliable reports to the investing public.

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7. Adjudicates On Transaction Disputes

Besides the business investment of the Nigeria Security and Exchange Commission, the Commission also adjudicates on issues that have to do with transaction disputes.

Part of its function is to receive complaints from investors and operators in the Nigeria’s capital market, and as well, treat these complaints, because aggrieved operators who have issues during market transactions could be treated unfairly in some places, and when such things happened, their next resort would be to take the matter to the Nigeria Security and Exchange Commission for settlement.

8. See To The Development Of Capital Market

Since the Nigeria’s capital market is under the supervision of the Nigeria Security and Exchange Commission, the Commission has a  role to play in ensuring that the Nigeria’s capital market developed rapidly in an order manner.

The Nigeria Securities and Exchange Commission is always there to assist the Nigeria’s capital market grow. In monitoring the development of the Nigeria’s capital market, the Nigeria Security and Exchange Commission will ensure that there is transparency in their activities so as to afford decision makers take accurate decision particularly, on investments by the virtue of reliable information and standard processes.

Once this is achieved, more money would be attracted into the Nigeria’s capital market, as well as reliable and viable companies that could come in for business thus, accessing money from the Nigeria’s capital market.

Read Also: 10 Causes of Insecurity in Nigeria

Conclusion

Nigeria’s capital market is regulated by the Nigeria Security and Exchange Commission, as well as all its transactions for the purpose of ensuring that there is absolute compliance to all the relevant rules.

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Joseph Athanasius

Joseph Athanasius is a Content Developer at InfoGuideNIgeria.com. InfoGuide Nigeria is a team of Resource Persons and Consultants led by Ifiokobong Ibanga. Page maintained by Ifiokobong Ibanga. If you need a personal assistance on this topic, kindly contact us.

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