Stakeholders list benefits of ISB passage to capital market

Chairman of the House Committee on Capital Markets and Institutions, Babangida Ibrahim, has stated that the Investments and Securities Bill (ISB) is capable of attracting more investment into the capital market, encourage the influx of foreign investors as well as boost investors’ confidence.

Ibrahim stated this during an interview at the weekend while commenting on the benefits of the recent passage of the bill.

According to him, the bill seeks to repeal the existing Investments and Securities Act 2007 and aid the establishment of new market infrastructure and wide-ranging system of regulation of investments and securities businesses in Nigeria, especially in the areas of derivatives, systematic risk management, financial market infrastructure and Ponzi scheme and platforms.

Other areas the bill would address are alternative trading systems, the inclusion of the National Pensions Commission as part of the board of the Securities and Exchange Commission (SEC) as well as deletion of the provisions on merger control in the current Act.

Others are the amendment of the criteria of borrowing by sub-nationals and strengthening, the enforcement powers of the SEC in line with the requirement of the International Organisation of Securities Commissions (IOSCO).

“We owe a duty to Nigerians and Nigeria to make sure that things work well. In the financial market, we have the money market and the capital market. With the challenges facing the money market, the only option left is the capital market.

“What we tried to do is to build investors’ confidence and ensure that investors are comfortable. At the same time, we realised that there are areas like derivatives, commodities exchanges, Ponzi schemes and the rest of them that are new developments in the capital market. We feel it’s very important for us to provide regulations for these new developments,” he said.

He also pointed out that the bill would enhance the expansion of products such as equities, bonds, Sukuk, and derivatives and introduce electronic share issuance.