Director-General of SEC, Dr Emomotimi Agama has said the Investments and Securities Bill (ISB) 2024 proposes a penalty of not less than N20 million or 10 years imprisonment or both for indicted Ponzi scheme operators.
Speaking at the Public Hearing on the bill on Thursday in at the National Assembly, Agama said the bill also prescribed stringent jail terms and other stiff sanctions for the promoters of Ponzi schemes.
He said that SEC introduced an express prohibition of Ponzi/Pyramid Schemes and other illegal investment schemes to ensure that illegal fund managers were not allowed to fleece unsuspecting Nigerians of their funds.
He said: “A vital provision in the Bill is the new stipulation that the Investor Protection Fund (IPF) set up by the securities exchanges would compensate investors who suffer pecuniary losses arising from the revocation or cancellation of the registration of a dealing member firm.
“In the extant law, compensation from the IPF is limited to instances of “bankruptcy”, “insolvency” or other acts of “negligence” by a dealing member firm.
“This Bill also contains an entirely new part which provides for the regulation of Commodity Exchanges and Warehouse Receipts.
”These provisions are essential for the development of the entire Commodities ecosystem.
“There is no doubt that Nigeria needs and deserves a world-class capital market to facilitate the on-going economic diversification.
“The passage and enactment of the Investments and Securities Bill will be a pivotal step in this direction,” he added.
In his remarks, the President of the Senate, Sen. Godswill Akpabio, said the ISB 2024 was a beacon of hope for the nation’s economic landscape.
Akpabio, represented by Sen. Binos Yaroe, said the country was taking a bold step toward modernising its financial market and fostering transparency by repealing the ISB Act 2007.
He said the Bill was designed to create a more robust and equitable environment for investments to thrive in an increasingly competitive global economy.
Be the first to comment