The speaker of the House of Representatives Mr Femi Gbajabiamila, says the legislature cannot allow the existence of deficiencies in the capital market that cause investors to worry about the safety of their investments.
The Speaker who stated this while declaring open, a public hearing organized by the House Committee on Capital Market and Institutions, stated that in the new global economy, investors have the option to quickly move money across industries, nations and continents.
Gbajabiamila, who was represented by the House deputy majority leaderPeter Akpatason, noted that the capital markets provide access to funding for new and existing businesses to innovate, expand, adapt to market changes and thrive.
Gbajabiamila observed that the proper and efficient operation of the capital market is essential to sustainable national economic growth.
The chairman of the committee, Mr Babangida Ibrahim, said the House and the panel are determined to ensure Securities and Exchange Commission (SEC) which regulates the capital market delivers on its core mandates to ensure due registration of players in the capital market, market integrity, avoid systematic risks, guarantee inspections, amongst others.
Babangida explained that the house invested time and resources in coming up with the 2 Bills which it hoped will ensure the resources of Nigerians in the Capital Market remain safe, accounted for and prosperous.
Stakeholders in their presentations threw their weights behind the bills particularly, the proposed legislation for a provision that the investor protection fund set up by securities exchanges would compensate investors who suffer pecuniary losses arising from the revocation or cancellation of the registration of a dealing member firm.
The stakeholders also expressed delight over the provision in the bill prohibiting Ponzi/Pyramid schemes as well as other illegal investment schemes and prescribes a jail term of not less than 10 years for promoters of such schemes.
