THE NIGERIA SECURITIES AND EXCHANGE COMMISSION (NSEC)

The history of the Nigerian securities and  exchange commission dates back to  1962  following  the  establishment of the capital issues committee (an adhoc  committee devoid of any legal status) whose primary  function was to see to the orderly development of the   capital market by  regulating share prices  and determining the  timing of issues, the committee  functioned essentially  as an  advisory body  under the  umbrella of the central  bank  of Nigeria (CBN) ,  after the civil war, however given the  recognition of  the important role the committee had played in the successful implementation of the  1972  Nigerian enterprises promotion Act, the capital issue  Act   was promulgated by the federal government in 1973, (CIC) vested with the power to determine:  

 
a.     The price  at which shares or debentures of  a company are to be sold to the public either through  offer for sale or indirect issues 
b.   The timing and  amount of sale 
c.    In the case of a quoted company, the prices, amount   and time of any subsequent or supplementary offer of shares or debentures are to be sold.

However, only public companies (quoted or unquoted) fell within the sphere of the CIC. In other words, private companies   were not obliged to seek the   approval of the CIC before raising funds through the security market.
In 1976, following the realization of the need for an apex capital   market regulatory body, the financial system   review committee recommended the establishment of the Securities and Exchange Commission.  The commission   was later  established  by the securities and  exchange commission Act on  27th  September,  1979 (effective retrospectively  from April,  1978) with an autonomous  and legal status.    

In addition to the various arms of capital market mentioned   above, it is common knowledge that the country’s development needs at the federal, state, and local government levels for   outstrip her revenue generation capabilities.  However,  the finance  and insurance sector is one that  has experienced   about the highest growth in  the Nigerian  economy especially  since  after the  introduction of the structural  adjustment  programme (SAP)  in  1986 . .Hence, this has had positive and far reaching implications on the activities of the capital market in Nigeria.
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