Section 28 Investments and Securities Act 2025

Section 28 of the Investments and Securities Act 2025 is about Conditions for registration of securities exchanges. 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) Every securities exchange shall be an entity incorporated or registered in Nigeria as defined in section 357 of this Act.

(2) An application for registration shall be accompanied by such information and particulars as the Commission may by regulations require.

(3) The Commission may register a body corporate as a securities exchange if it is satisfied that the rules of the body corporate make adequate provisions, where applicable with respect to —
(a) the exclusion from its membership or trading, persons who are not of good character and who do not possess a high degree of business integrity;

(b) the expulsion, suspension or discipline of members or participants for conduct inconsistent with just and equitable principles in the transaction of securities business or for contravention of or failure to comply with the rules of the securities exchange or the provisions of this Act;

(c) the conditions under which securities may be listed, quoted or admitted on that securities exchange;
(d) the conditions governing dealings in securities by the members or participants;
(e) the class or classes of securities which may be dealt in by members or participants; and

(f) a fair representation of persons in the selection of members of the board or participants of the securities exchange and the administration of its affairs and provided that in securities exchanges with listed companies, at least one or more representatives of listed companies and investors shall each be represented by one or more members or participants on its board.

(4) In considering an application for registration, the Commission may have regard to any information in its possession whether provided by the applicant or not:
Provided that any information to be relied upon by the Commission must have
been requested from the applicant, and such information shall be verified by the Commission as accurate.

(5) The Commission, in granting approval to register a securities exchange under this section, shall ensure that the interest of the public will be served by the grant of the approval.

(6) The Commission shall issue a certificate of registration to a body corporate registered under this section.