securities and exchange commission (SEC)

The Securities and Exchange Commission (SEC) is the regulatory apex organization of the Nigeria Capital market. Security and Exchange Commission was established in 1979.

The Securities and Exchange Commission of Nigeria (SEC Nigeria) is the regulatory body responsible for overseeing the Nigerian capital market.

Established by the Securities and Exchange Commission Act of 1999, it plays a crucial role in ensuring the integrity, transparency, and stability of the Nigerian securities industry. Here are the key components of SEC Nigeria’s structure and its functions:

Structure of SEC Nigeria:

  1. Board of Commissioners:
    • The highest decision-making body of SEC Nigeria is the Board of Commissioners, consisting of a chairman, the Director-General, and other commissioners. The Board sets policies, regulations, and guidelines for the Nigerian capital market.
  2. Management Team:
    • The Director-General is the chief executive officer of SEC Nigeria and is responsible for the day-to-day operations of the Commission. The management team includes directors and senior officers overseeing various departments and functions.

  1. Departments and Divisions:
    • SEC Nigeria is organized into several departments and divisions, each responsible for specific areas of regulation and oversight. These include the Legal and Enforcement Department, Market Development Department, Investment Management Department, and Registration and Market Infrastructure Department, among others.
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securities and exchange commission

Functions of SEC Nigeria:

  1. Regulatory Oversight:
    • SEC Nigeria regulates and supervises all activities in the Nigerian capital market, including the issuance and trading of securities. It ensures compliance with securities laws, rules, and regulations.
  2. Investor Protection:
    • One of SEC Nigeria’s primary functions is to protect the interests of investors in the capital market. It does this by ensuring that market participants adhere to ethical standards and by providing investor education and awareness programs.
  3. Market Development:
    • SEC Nigeria promotes the development and growth of the Nigerian capital market. It encourages the creation of new financial products, market innovations, and the expansion of market infrastructure.
  4. Enforcement and Compliance:
    • SEC Nigeria has the authority to enforce securities laws and regulations. It investigates and takes action against market abuses, fraud, insider trading, and other violations.

  1. Registration and Licensing:
    • SEC Nigeria registers and licenses various market participants, including capital market operators, such as stockbrokers, registrars, and investment advisers.
  2. Rulemaking and Policy Development:
    • SEC Nigeria formulates and implements rules and policies governing the capital market. It conducts research, engages stakeholders, and seeks to align its regulations with international best practices.
  3. Market Surveillance:
    • SEC Nigeria monitors and supervises the activities of market participants to detect and prevent market manipulation, fraud, and other irregularities.
  4. Corporate Governance:
    • SEC Nigeria promotes good corporate governance practices among publicly traded companies. It sets standards for corporate governance and monitors compliance.
  5. Market Education and Investor Awareness:
    • SEC Nigeria conducts educational programs and campaigns to increase investor awareness and understanding of the capital market. It aims to empower investors to make informed decisions.
  6. Collaboration and Coordination:
    • SEC Nigeria collaborates with other regulatory bodies, such as the Central Bank of Nigeria and the Nigerian Stock Exchange, to ensure a harmonized regulatory framework for the capital market

SEC Nigeria’s functions are essential for maintaining investor confidence, ensuring market integrity, and facilitating the growth of the Nigerian capital market.

The Commission plays a crucial role in attracting investments, both domestic and international, and supporting economic development in Nigeria.

            As of April 2013, the corporation has a total of Thousand 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. The primary mission of the Securities and Exchange Commission is to protect investors and maintain the integrity of the securities markets including the primary market and secondary market.

The Commission is appointed by the government and has the overall responsibility to formulate securities legislation and administer it as well. Securities and Exchange Commission also monitors various important regulatory and compliance functions.

The Security and Exchange Commission also oversees other key participants in the securities market, including stock exchanges, broker–investment advisors, mutual funds, and asset management companies.

Functions of SECURITIES and exchange commission

The main purpose of the Security and Exchange Commission activity deals with the disclosure of important financial information, enforcing the securities rules and regulations, and protecting individuals as well as institutional investors who interact with these organizations.

It was established in 1987 by the Investments and Securities Act (ISA) No. 29 of 1987, and its mission is to develop and regulate a capital market that is dynamic, fair, transparent and efficient, to contribute to the Nation’s economic development.

The SEC’s functions include:

  • Registering and regulating securities exchanges and other capital market operators
  • Regulating the issuance of securities by public companies
  • Protecting investors from fraud and other abuses
  • Promoting fair and orderly trading in the capital market
  • Developing and enforcing regulations and standards for the capital market

The SEC is overseen by a Board of Directors, which is appointed by the President of Nigeria. The Board is responsible for setting the SEC’s policies and strategies.

The SEC is headquartered in Abuja, Nigeria, and has regional offices in Lagos, Kano, and Port Harcourt. It has a staff of over 400 people, who are responsible for carrying out the SEC’s various functions.

The SEC is a member of the International Organization of Securities Commissions (IOSCO), which is an association of securities regulators from over 130 countries.

The SEC is an important institution in the Nigerian economy. It plays a vital role in protecting investors and ensuring the fair and orderly operation of the capital market. The SEC also plays a role in promoting economic development by providing a platform for businesses to raise capital.

Here are some of the benefits of the Securities and Exchange Commission of Nigeria:

  • It protects investors from fraud and other abuses.
  • It promotes fair and orderly trading in the capital market.
  • It develops and enforces regulations and standards for the capital market.
  • It provides a platform for businesses to raise capital.
  • It contributes to the Nation’s economic development.

 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 funds and monitor and control them.
  • To develop, monitor and control the 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 the security market.
  • To control speculative business, especially for securities.
  • To take shares and stock of companies and control of companies.
  • To inspect security dealers, issuers and stock exchanges and ask to provide information, investigate and conduct audits.
  • To analyze, discuss and conduct research on any activity related to security.
  • To disclose and preserve any information and data related to the security market. These are the functions of the SEC to develop the share market and protect the interest of the shareholders.



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