Section 46 Investments and Securities Act 2025

Section 46 of the Investments and Securities Act 2025 is about Proceedings of a financial market infrastructure to take precedence over insolvency procedures. 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:

Notwithstanding any provision of any other law, none of the items listed in this section shall be regarded as invalid on the ground of inconsistency with the law relating to the insolvency of any person or the distribution of the assets of a person on insolvency, bankruptcy, winding up, receivership or any other arrangement or subject to challenge, avoidance, or revocation under Nigerian law on —
(a) a market contract;
(b) the default rules of a financial market infrastructure;

(c) the rules of a financial market infrastructure relating to the settlement of a market contract not dealt with under its default rules;
(d) the transfer of any clearing member client contract or the settlement of any cleared contract in accordance with the default rules of a financial market infrastructure;
(e) clearing member client contract transferred in accordance with the default rules of a financial market infrastructure, the transfer of any client trade between a participant and its client, or group of client trades, that corresponds to that clearing member client contract;

(f) a transfer of any collateral or any security over such collateral in conjunction with the transfer of any clearing member client contract or client trade as mentioned in paragraphs (d) or (e);
(g) a qualifying property transfer; and
(h) any net sum certified by a financial market infrastructure under its default rules to be payable to or by a defaulting participant or member:

Provided that nothing in this section shall be construed to limit the exercise of any right of a financial market infrastructure under insolvency laws or as specified in the rules of the financial market infrastructure.