LEGAL AND INSTITUTIONAL FRAMEWORK REGULATING PUBLIC OFFERING OF SECURITIES IN THE NIGERIAN CAPITAL MARKET
LEGAL AND INSTITUTIONAL FRAMEWORK REGULATING PUBLIC OFFERING OF SECURITIES IN THE NIGERIAN CAPITAL MARKET
No Thumbnail Available
Date
2008-08
Authors
EKPUNGU ESQ, GEORGE ABANG
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
A nation’s financial system is made up of the Money Market, Capital
Market and the Insurance Market. While Central Bank of Nigeria
serves as the apex regulatory organization of the Nigerian Money
Market, the Securities and Exchange Commission (SEC) is the apex
regulatory body of the Nigerian Capital Market, while the National
Insurance Commission (NAICOM) regulates the Insurance Sector.
Capital Market, in simple terms, is a market for raising long-term
funds. It is that segment of the financial market which represents the
intricate intermediation functions and processes of a network of
individuals, institutions and financial instruments between the users
and providers of long-term funds are mobilized and channeled into
productive investments by the issuance of equities and interest
bearing securities. The market also provides a mechanism for the
transfer of existing securities (secondary market), thus enabling those
who wish to dispose or acquire secondary securities to do so.
Liquidity in the capital market is thus created and participation in
primary issues enhanced.
By virtue of its vital functions of resource mobilization and allocation,
the capital market facilitates capital formation and accelerates
economic development, which ultimately engenders societal wellbeing.
It creates an avenue for the participation of the populace in the
Corporate Sector of an economy through the ownership of Securities.
Owing to the potential benefits of the capital market to an economy,
regulatory frameworks are usually put in place, in many countries
including Nigeria, in an effort to develop an active and efficient
capital market. Such regulatory framework could be self-imposed by
the operators of the system or statutory, such as Acts of Parliament.
The need for regulation, in one form or the other, arises from the fact
that the lack of regulation could lead to chaos and anarchy in financial
transaction and eventual collapse of the system. For instance, in
response to the stock market crash of 1929, the United States of
America created the Securities and Exchange Commission by the
SEC Act of 1933.
In Nigeria, regulation of the Capital Market can be said to have
started after the enactment of the Capital Issues Commission Act of
1962, which was a direct regulatory imperative of the establishment
of the Lagos Stock Exchange two years earlier.
Public offering of securities in the Nigerian Capital Market is a
fundamental step in accessing funds from the market and the resultant
transaction chain, is the fulcrum upon which Primary and Secondary
Market activities revolve.
Description
BEING AN LLM THESIS SUBMITTED TO THE
POSTGRADUATE SCHOOL, AHMADU BELLO
UNIVERSITY, ZARIA
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR
THE AWARD OF THE DEGREE OF MASTER OF LAWS
(LLM) OF THE AHMADU BELLO UNIVERSITY, ZARIA.
DEPARTMENT: COMMERCIAL LAW
FACULTY: LAW
AUGUST, 2008.
Keywords
LEGAL,, INSTITUTIONAL,, FRAMEWORK,, REGULATING,, PUBLIC,, OFFERING,, SECURITIES,, NIGERIAN,, CAPITAL,, MARKET.