Section 35 Investments and Securities Act 2025

Section 35 of the Investments and Securities Act 2025 is about Power to issue directives to 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) The Commission may, where it deems appropriate, issue directives to a securities exchange with respect to —
(a) trading on or through the facilities of that securities exchange or pertaining to any securities listed on the securities exchange;

(b) the manner in which a securities exchange carries on its business including the manner of reporting off-market transactions; or
(c) any other matter which the Commission considers necessary for the effective administration of this Act.

(2) A securities exchange that fails or refuses to comply with or respond to a directive given under subsection (1) is liable to a penalty of not less than N10,000,000 and a further penalty of not less than N500,000 for every day the non-compliance continues.

(3) Where the Commission, after giving an executive officer of a securities exchange, an opportunity of being heard, is satisfied that such officer has contravened, failed or refused to comply with the provisions of this Act or any regulations made under it or the rules of the securities exchange, the Commission may suspend or remove the executive officer from office.

(4) The Commission may, in the public interest or for the protection of investors, and after giving the executive officer an opportunity of being heard, direct the securities exchange in writing to remove the executive officer and where the securities exchange fails to comply with the directive of the Commission under subsection (3), the Commission may suspend or remove the executive officer from office.