Section 48 Investments and Securities Act 2025

Section 48 of the Investments and Securities Act 2025 is about Net sum payable upon compliance with default proceedings. 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) Subject to section 46 of this Act, where a net sum has been certified by a financial market infrastructure under its default rules as payable by or to a defaulter, then such sum is provable in the winding up or administration or, as the case may be, is payable to the relevant office-holder of an insolvency proceeding, and shall be taken into account, where appropriate, for set-off applicable in the case of winding up or administration or other insolvency proceeding, in the same way as a debt due before the commencement of the insolvency proceeding.

(2) Where a sum is taken into account which arises out of a market contract entered into at a time when the creditor had notice that a meeting of creditors had been summoned under any insolvency law or provisions in effect in Nigeria, or that a winding up petition was pending, or that an application for an administration order was pending or that any person had given notice of intention to appoint an administrator, the value of any profit to the creditor from the sum being so taken into account is recoverable from it by the relevant officeholder unless the court directs otherwise, but this provision does not apply where the sum arises from an ordinary contract.