To Develop and Regulate a Capital Market that is Dynamic, Fair, Transparent and Efficient, to Contribute to the Nation’s Economic Development
To be Africa’s Leading Capital Market Regulator
What We Do
In regulating the market, the Commission undertakes the following activities in order to protect investors, market operators and also ensure market integrity. Regulation is carried out through deployment of the following tools:
- Registration of securities and market intermediaries to ensure that only fit and proper persons / institutions are allowed to operate in the market. Instruments and persons registered in the market are:
- Securities/Commodity Exchanges/Capital Trade Points
- Futures, Options and Derivatives Exchanges
- Depository, Clearing and Settlement agencies
- Capital Market Operators:
- Issuing Houses
- Securities dealers/Stock brokers/Sub- brokers
- Registrars/Transfer agents
- Reporting Accountants
- Investment Advisers etc.
- Debt instruments
- Collective investment schemes
- Inspection either done “onsite” or “off-site”. The Commission, at regular intervals, calls for information from capital market operators. It also undertakes and conducts inquiries and audits of any participant in the market whenever necessary.
- Surveillance is carried out over exchanges and trading systems to forestall breaches of market rules as well as deter and detect manipulations and trading practices which are capable of causing market disruption.
- Investigation of alleged breaches of the laws and regulations governing the capital market and enforcement of sanctions where appropriate.
- Enforcement actions are taken against market operators who are found wanting after investigation is carried out, in minor cases, an all parties meeting is convened by the Commission where it mediates between parties involved in a dispute. However, if the case is serious or where no resolution is reached or a party fails to comply with a directive given at the all parties meeting, the defaulting party will be called before the Administrative Proceedings Committee (APC), which is a quasi judicial court, with only civil jurisdiction. Appeals against decisions of the APC are usually made at the Investment and Securities Tribunal (IST). Enforcement action may be in the form of payment of fine, ban, suspension or even forwarding the case to the Nigeria Police Force (NPF), Economic and Financial Crimes Commission (EFCC) or the Attorney – General of the Federation (AGF) where allegations are found to be criminal in nature.
- Rule making by the Commission as developments occur. This is to ensure that the Commission meets up with international best practices.
In the area of market development, the Commission collaborates with relevant stakeholders to introduce new products and processes. The SEC encourages improved investor participation in the market through any or a combination of the following activities:
- Workshops and seminars
- Town hall meetings
- Television/Radio programmes
- Introduction of e-processes e.g. e-dividend, e- allotment, etc
- Secondary school quiz and essay competitions
- Introduction of capital market studies in tertiary institutions
- Publications (i.e. Journals, bulletins and cartoons)
How We Work
Our activities are currently governed by the Investments and Securities Act 29 of 2007. The Commission is led by a Nine-member Board. A Four-member Management Executive Committee consisting of the Director-General and three Executive Commissioners (in charge of Operations, Corporate Services, and Legal & Enforcement) superintend the day-to-day activities of the Commission. Currently, the workforce is over 500 staff-members spread across Four Directorates, Three Zonal Offices and the following Departments:
- Securities and Investment Services (SIS): Registers and supervises the issuance of securities of public companies, as well as merger and acquisition activities. Reports to the Executive Commissioner, Operations.
- Registration, Exchanges, Market Infrastructure and Innovation (REMI): Responsible for the registration of all market operators and recognized securities exchanges. In addition, the department supervises the activities of the securities exchanges and other trading platforms. Reports to the Executive Commissioner, Operations.
- Investment Management (IM): Supervises unit trusts and venture capital activities, and reports to the Executive Commissioner, Operations.
- Financial Standard and Corporate Governance (FS&CG): The department reviews the financial health of publicly quoted companies to protect shareholders, and ensure compliance with the code of corporate governance and other relevant guidelines. Reports to the Executive Commissioner, Operations.
- Office of the Chief Economist (OCE): Undertakes the market development functions of the Commission through research and other development activities. The Department also serves as the Secretariat of both the monthly Management Committee meeting and the Capital Market Committee (CMC), a quarterly interface with the market. Reports to the Executive Commissioner, Operations.
- Zonal Offices Coordinating (ZOC): Coordinates the activities of the Commission’s three zonal offices located in Lagos (LZO), Port- Harcourt (PHZO), and Kano (KZO). Reports to the Executive Commissioner, Operations.
- Information Technology (IT): Develops and manages the IT resources of the Commission and provides requisite technical services functions. Reports to the Executive Commissioner, Operations.
- Enforcement: Undertakes the enforcement and compliance functions of the Commission and serves as the secretariat of the quasi judicial arm of the Commission, the Administrative Proceedings Committee. Reports to the Executive Commissioner, Legal and Enforcement.
- Monitoring: Monitors the financial health of market operators to ensure that only fit and proper participants are in the market. It also investigates and resolves disputes among market stakeholders. Reports to the Executive Commissioner, Legal and Enforcement.
- Legal: Provides legal advisory and rule making functions. Reports to the Executive Commissioner, Legal and Enforcement.
- Procurement & Support Services (P&SS): A service department responsible for the management of the Commission’s material assets. Reports to the Executive Commissioner, Finance and Administration.
- Finance & Accounts (F&A): Another service department. Manages the financial assets, activities and records of the Commission. Reports to the Executive Commissioner, Finance and Administration.
- Human Resource Management (HRM): Also a service department. Responsible for the recruitment, development and retention of highly skilled staff. Reports to the Executive Commissioner, Finance and Administration.
- External Relations (ER): The department is responsible for the management of the Commission’s image as well as its relationship with the various stakeholders in the market. It collaborates with the Media Unit of the DG’s office to manage the nature and flow of information about the Commission. Reports to the Director General.
- Office of the Secretary to the Commission: Serves as the Secretariat of the Board of the Commission, its Committees and the Management Executive Committee. It offers advisory services to the Board on issues of compliance with applicable laws and regulations. Reports to the Director General.
- Internal Control (IC): A department responsible for ensuring that the assets of the Commission are effectively applied. It also ensures compliance with approved policies, procedures and regulations and the completeness, accuracy and reliability of the Commission’s financial records. Reports to the Director General.
- Market Development: The Market Development Department (MDD) derives its functions from section 13(e) (f) (i) (j) of the ISA No. 29 of 2007. It ensures that all stakeholders – investors, academic community, market operators, law makers, professional bodies, government functionaries – are appropriately educated on the activities and initiatives of the Commission.
The Board determines the policy of the Commission whilst the Director General in turn oversees the day-to-day administration of the Commission. The Commission has its Headquarters at the Federal Capital Territory, Abuja and operates through its Three (3) Zonal Offices located in Lagos, Kano and Port-Harcourt
The Commission continuously initiates measures which reflect the dynamic nature of the financial services sector. As a result, research aimed at understudying new products or new approaches, with an increasing focus on cohesive monitoring of major activities is conducted. Enlightenment programmes spread across Nigeria, aimed at sensitizing the general public to the operations of the capital market are also regularly held in all parts of Nigeria. The presence of the SEC Offices in three Geopolitical Zones of the Country has added fillip to such effort. Literature such as pamphlets and books on various aspects of the capital market are published and circulated by the Commission.