Section 83 Investments and Securities Act 2025

Section 83 of the Investments and Securities Act 2025 is about Power of the Commission to issue directive for management of systemic risk. It is under Part VIII (Management Of Systemic Risk) of the Act. It provides as follows:

(1) The Commission may issue a directive in writing requiring a capital market participant to take such measures as may be deemed necessary in the interest of monitoring, mitigating or managing systemic risk in the capital market or in the interest of the public.

(2) The Commission may, without notice or a hearing, issue a directive or an order under this subsection to suspend trading in a security or related derivative, or to suspend all trading on a recognised exchange or otherwise, if in the opinion of the Commission —
(a) there is systemic risk requiring immediate action to be taken in the public interest; and

(b) the order is necessary to maintain or restore fair and orderly securities markets, to ensure prompt, accurate and safe clearance and settlement of transactions in securities or to assist in doing so in another jurisdiction.

(3) In exercising its power under this section, the Commission shall also take into consideration the financial stability of the capital market, and the directive shall take effect immediately.

(4) For the purpose of issuing a directive under subsection (1), where the primary business operations of the capital market participant concerned is under the regulatory purview of another financial sector regulator, the Commission shall liaise and cooperate with such regulator.

(5) Where a directive has been issued under subsection (2), the capital market participant or any person directly affected by the order and who consider themselves aggrieved by it, shall nonetheless be given an opportunity to be heard within 14 working days after making oral or written representations to the Commission.

(6) A directive issued under subsection (2) may be amended or modified after the capital market participant or aggrieved person has been given an opportunity to be heard under subsection (5).

(7) A capital market participant, its officers or any person who fails to comply with the notice issued under subsection (1), is liable to a penalty of not less than N5,000,000 and a further penalty of not less than N10,000 for every day that the violation continues.