Investment and Securities

• Pages: 550-554

550

INVESTMENT AND SECURITIES.

ADMINISTRATIVE PROCEEDINGS COMMITTEE OF SECURITIES AND EXCHANGE

COMMISSION.

Is the decision of the Administrative Proceedings Committee of the Securities and

Exchange Commission final? “The decision of the Administrative Proceedings Committee is

not final. This is because under section310(3) of the Act, the decision of the committee shall

be of no effect until it is confirmed by the Securities and Exchange Commission, and where a

person is dissatisfied by the decision of a Tribunal, he may appeal to the Court of Appeal.

Section 295(1) of the Act. He had held that in view of the combined effect of the provisions of

section 310 of the Act and section 36(2) of the Constitution of the Federal Republic of Nigeria,

1999, the act of constituting the said committee to determine questions concerning the

functioning and operations of Capital Market Operations is not contrary to the principles of

natural justice enshrined in the Constitution of the Federal Republic of Nigeria.” – Per Pemu,

J.C.A., in Itsueli v. S.E.C. Suit No. CA/L/01/2009; (2012) 2 N.W.L.R. (Pt. 1284) 329 at 366.

Duty on the Administrative Proceedings Committee of the Securities and Exchange

Commission to protect right to fair hearing. I do not share the view that the 2nd respondent

is a committee set up to do the bid of the 1st respondent or subjected to any whims and caprices

of whoever. Indeed the 2nd respondent owes a duty in law, governed by the ISA2007, as well

as the Rules and Regulations made there under, to protect the right to and concept of fair

hearing in the discharge of its duty and in particular in the dispensation of justice. There is

therefore a presumption of law that the 2ndrespondent adheres to the rules of natural justice

and that its affairs would be governed by section 36(1) of the Constitution of the Federation of

Nigeria, from where flows thestream of the relevant statute that governs it, that is to say the

I.S.A. 2007.” –Per Pemu, J.C.A., in Itsueli v. S.E.C. Suit No. CA/L/01/2009; (2012) 2

N.W.L.R. (Pt. 1284) 329 at 364.

CAPITAL MARKET.

What is capital market? “It is clear to both parties in this appeal that the capital market is a

place where people buy securities such as shares, debentures, and bonds. The purchaser in

reaching his decision usually rely on information about the company supplied by the directors

of the company and verified by professionals such as auditors, the issuing house, stockbroker,

trustee, solicitor to the company and solicitor to the offer.” – Per Bada, J.C.A., SEC v. Osindero

Oni & Lasebikan Suit No. CA/A/222/05; (2009) 5 N.W.L.R. (Pt. 1134) 377 at 399.

INVESTMENTS AND SECURITIES ACT, 2007.