Section 26 Investments and Securities Act 2025

Section 26 of the Investments and Securities Act 2025 is about Registration of a securities exchange. It is under Part V (Registration and Regulation of Securities Exchanges, Financial Market Infrastructures and other Self Regulatory Organisations) of the Act. It provides as follows:

(1) A person shall not establish or operate a securities exchange as defined in this Act unless such a person has been registered with the Commission in accordance with the provisions of this Act and the rules and regulations made under it.

(2) Where any person contravenes subsection (1) —
(a) the Commission shall halt all of its operations immediately or within such timeframe as the Commission may determine; and
(b) each of the directors, promoters or any person who can reasonably be regarded as being in control of the company shall be deemed to have committed an offence and is liable on conviction to a term of imprisonment of not less than five years or a fine of N10,000,000 or both.

(3) The Commission may, in lieu of prosecution under subsection (2), impose a penalty of not less than the prescribed paid-up share capital of the relevant securities exchange as specified by the Commission and a further sum of not less than N100,000 for every day the violation continues.