Section 51 Investments and Securities Act 2025

Section 51 of the Investments and Securities Act 2025 is about Protection of certain actions of financial market infrastructure. 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:

Without prejudice to any specific provision of this section, the rules of a financial market infrastructure as to —
(a) the settlement of market contracts and transfer orders,
(b) the netting of any right and obligation of clearing member or participant in the financial market infrastructure under the rules of the financial market infrastructure or one or more market contracts,

(c) the set-off of any obligation between the financial market infrastructure and a clearing member or participant or between clearing members or participants in the financial market infrastructure,
(d) the termination, close out or cancellation of any market contract,

(e) the transfer of any market contract and associated collateral,
(f ) the enforcement of any security interest of a financial market infrastructure in respect of any collateral provided by a clearing member or participant for any market contract,

(g) the appropriation of any collateral held by a financial market infrastructure under its default rules, in set-off against any obligation of a clearing member or participant that has become a defaulter under such default rules,

(h) any qualifying collateral transfer, or

(i) the certification by a financial market infrastructure as to the final net sum representing any sums from a clearing member or participant to a financial market infrastructure, or from a financial market infrastructure to a clearing member or participant, following the completion of the financial market infrastructure’s default proceedings, and any action taken by a financial market infrastructure under such rules,

shall be protected and shall not be subject to challenge under the laws of contract or insolvency or any other provision of law in Nigeria, by any person, clearing member or participant or any insolvency office-holder under any insolvency proceedings.