Section 163 Investments and Securities Act

Section 163 of the Investments and Securities Act 2025 is about Redemption of units or securities. It is under Part XIII (Collective Investments Schemes) of the Act. It provides as follows:

(1) Whenever the holder of units or participatory interest of an authorised open-ended scheme so requests, the manager under the scheme, shall, within the time prescribed by the Commission, buy from the holder such number of those units or participatory interest as the holder may specify at the price for the time being at which the manager buys units or participatory interest of the scheme.

(2) A manager of a scheme shall not suspend the right or postpone the date of redemption of units or participatory interest by a holder provided that such suspension or postponement may be done during public holidays or emergencies or when the securities exchange is closed or whenever the Commission permits it.

(3) A manager of a scheme who contravenes the provisions of this section is liable to a penalty of not less than N1,000,000 and N50,000 for every day the violation continues.