The 1979 securities and exchange commission decree no. 71. 1985; second tier securities market (SSM) 1999 investment and securities act. - SS3 Commerce Lesson Note

In 1979, Nigeria introduced the Securities and Exchange Commission Decree No. 71. This decree established the Securities and Exchange Commission (SEC) as the regulatory body for the Nigerian capital market. The SEC's primary role is to oversee and regulate the activities of participants in the capital market, ensuring fairness, transparency, and investor protection.

The Securities and Exchange Commission Decree No. 71 empowered the SEC to supervise and regulate various aspects of the capital market, including the registration of securities, licensing of market intermediaries, monitoring of market operations, and enforcement of rules and regulations. The decree aimed to create a framework that promotes investor confidence, fosters market integrity, and facilitates the efficient functioning of the capital market.

In 1985, Nigeria introduced the Second-Tier Securities Market (SSM). The SSM was established as a trading platform within the Nigerian Stock Exchange to provide smaller companies with access to capital and a separate market segment. It aimed to promote the growth of emerging companies by easing listing requirements and facilitating trading of their securities. The SSM provided an avenue for these companies to raise funds from investors and expand their operations.

In 1999, Nigeria enacted the Investment and Securities Act. This act consolidated and updated the laws governing the Nigerian capital market. It aimed to enhance investor protection, regulate market intermediaries, and promote market efficiency. The act introduced provisions for market manipulation, insider trading, and fraudulent activities, aiming to deter such practices and ensure fair market operations.

These developments, including the Securities and Exchange Commission Decree No. 71, the establishment of the Second-Tier Securities Market (SSM), and the Investment and Securities Act, have played significant roles in shaping the Nigerian capital market. They have contributed to the establishment of regulatory oversight, enhanced investor protection, and facilitated the growth and development of the capital market in Nigeria.