STRUCTURE AND FUNCTIONS OF SECURITIES AND EXCHANGE COMMISSION (SEC)
The primary mission of the Securities and Exchange Commission is to protect investors and maintain the integrity of the securities markets including primary market and secondary market. The Commission is appointed by the government and have overall responsibility to formulate securities legislation and administer as well.
Securities and Exchange Commission also monitors various important regulatory and compliance functions. The Securities and Exchange Commission also oversees other key participants in the securities market, including stock exchanges, broker – investment advisors, mutual funds, and asset management companies
The security and exchange commission (SEC) is the regulatory apex organization of the Nigeria Capital market. Security and exchange commission was established in 1979.
Nigeria does have a regulatory body known as the Securities and Exchange Commission (SEC Nigeria), which oversees the securities industry in the country.
Here are key points about the Securities and Exchange Commission (SEC) in Nigeria:
- The Securities and Exchange Commission (SEC) in Nigeria was established by the Securities and Exchange Commission Act No. 41 of 1999. The Act empowers the SEC to regulate the capital market, protect investors, and ensure the integrity of the securities industry.
- Mandate and Functions:
- SEC Nigeria’s mandate includes regulating the issuance and trading of securities, protecting investors, ensuring fair and efficient markets, and promoting the development of the capital market in Nigeria.
- It oversees various market participants, including capital market operators, public companies, and other entities involved in securities transactions.
- SEC Nigeria is governed by a board of commissioners and is headed by a Director-General. The board is responsible for setting policy direction and overseeing the activities of the Commission.
- Regulatory Oversight:
- SEC Nigeria has regulatory oversight over a wide range of activities in the Nigerian capital market, including the registration and regulation of securities, securities exchanges, investment advisers, fund managers, and other market participants.
- Capital Market Development:
- SEC Nigeria plays a crucial role in the development and regulation of the Nigerian capital market. It introduces policies and initiatives to enhance market transparency, improve investor protection, and foster the growth of the capital market.
- Investor Protection:
- SEC Nigeria is committed to protecting the interests of investors in the Nigerian capital market. It enforces regulations to ensure that investors receive accurate and timely information about investment opportunities.
- The Commission has enforcement powers to investigate and take enforcement actions against violations of securities laws and regulations. This includes addressing market abuses, fraud, and other unlawful activities.
- Market Surveillance:
- SEC Nigeria engages in market surveillance to monitor trading activities, detect market manipulation, and ensure the integrity of the capital market.
- Collaboration with Other Regulatory Bodies:
It’s important to note that developments in regulatory bodies and their names can change, and it’s advisable to check with current and authoritative sources for the latest information on regulatory bodies in Nigeria.
As at April 2013, the corporation has a total of One Thousand and Twenty Four (1024) diverse workforce spread across its Head office in Abuja and Lagos office as well as Zonal offices in Kano, Bauchi, Enugu, Ilorin, Benin, Port – Harcourt, Sokoto, and Yola.
The Securities and Exchange Commission (SEC) is the principal regulatory agency that regulates and makes compliance issues for the securities industry.
Functions of securities and exchange commission (SEC)
The main purpose of the Securities and Exchange Commission activity deal with disclosure of important financial information, enforcing the securities rules and regulations, and protecting individuals as well as institutional investors who interact with these organizations. The major functions of the Securities and Exchange Commission are as follows:
- To control the stock exchange or any other security market business.
- To determine and register the activities of stock broker, sub – broker, share transfer agent, trustee or trustee deed, issue registrar, underwriter, portfolio manager, investment advisor, or any other middle related with the share market.
- To register any type of joint – stock scheme including mutual fund and monitor and control them.
- To develop, monitor and control security market’s all authorized and self – controlled bodies/organizations.
- To develop investment – related knowledge and to arrange for training facilities for persons involved with security market.
- To control speculative business especially for securities.
- To take shares and stock of companies and control of companies.
- To inspect security dealers, issuer and stock exchange and ask to provide information, investigation and conduct audit.
- To analyze, discuss and conduct research any activity related with security.
- To disclose and preserve any information and data related with security market. These are the functions of SEC to develop the share market and protect the interest of the shareholders.
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