Security and Exchange Commission, (SEC) the Chartered Institute of Stock Brokers, as well as other critical stakeholders in the Nigerian capital market have expressed support for a bill before the House of Representatives, seeking to prohibit Ponzi schemes in the country.
The stakeholders expressed support for the proposed legislation, which prescribes 10year jail term for operators and promoters of Ponzi Scheme, at a public hearing on the organize by the House Committee on Capital Market and Institutions, on Tuesday, in Abuja.
The proposed legislation has as its long title “a bill for an act to repeal the investment and security act, 2007 and enact the investments and securities bill to establish securities and exchange commission as the apex regulatory authority for the Nigerian capital market as well as regulation of the market to ensure capital formation, the protection of investors, maintain fair, efficient and transparent market and reduction of systematic risk and for related matters”.
The Director General, SEC, Lamido Yuguda, while speaking at the public hearing, lauded the House for coming up with an amendment to the Investment and Security Act( ISA), stating that it will help to remove ambiguity.
Yuguda noted that the Commission observed areas in the existing act that needed to be reviewed, so as to enhance the competitiveness of the Nigerian capital market at the international scene.
According to him, “given the market’s evolution since the passage…
