Frequently Asked Questions
What is Investments and Securities Tribunal?
Investments & Securities Tribunal (IST) is a dedicated fast-track civil court established pursuant to section 274 of the Investments & Securities Act 2007, for the resolution of disputes in the Nigerian Capital Market.
What is the objective of the Tribunal?
To provide timely and efficient resolution of investments/capital market disputes with fairness, flexibility and transparency
What are the Powers of the Tribunal?
The Act empowers the Tribunal, among others to:
- Summon and enforce the attendance of any person.
- Examine persons on oath.
- Require the discovery and production of documents.
- Dismiss an application for default or decide matters ex-parte;
- Do anything, which in the opinion of the Tribunal is incidental or ancillary to its functions under the Act.
- Review its decisions.
- Receive evidence on affidavits.
- Call for examination of witness or documents.
- Set aside any order or dismissal of any application for default or any order made by it ex-parte.
Who can come before the Tribunal?
- Investors in the capital market.
- Public companies.
- Capital Market Operators.
- Self Regulatory Organisation (SROs (stock exchanges, etc).
- Securities & Exchange Commission (SEC).
How is the Tribunal’s operation different from that of a traditional High Court?
The Tribunal combines the rule of law applicable in traditional law courts with the responsiveness, flexibility, speed and cost effectiveness associated with specialized courts and alternative disputes resolution (ADR) systems. The Tribunal has specialized knowledge of the capital market/securities and operations due to the varied technical and operational skills of its members and staff which it applies in deciding each case brought before it.
The Tribunal has a Planning, Research & Statistics Department and a Legal Services Department responsible for world-class technical and legal research support services in addition to other external expert advice obtained as the need arises.
The Tribunal is not bound strictly by the rules of evidence applicable in traditional courts. Another difference between the Tribunal and other traditional law courts is that each party could represent himself or appoint a representative who may not be a legal practitioner.
What types of cases does the Investments and Securities Tribunal deal with?
- Misappropriation of clients’ funds by a stockbroker.
- Non-remittance of issue proceeds by an Issuing House to the issuer/company.
- Non-remittance of dividends by a Registrar/ Public company/ Stockbroker.
- Late transfer or registration of shares/stocks by any stockbroker.
- Disputes over mergers and acquisition between the shareholders and the public quoted company,
self regulatory authority, the SEC etc.
- Disputes between operators and any Self-Regulatory Organisation (SRO) in the market (e.g. stockbrokerage firm and a stock exchange and dispute between a registrar and exchange).
- Disputes arising from the rules, regulations and such other guidelines made by the SEC, or any securities exchange.
- Disputes arising from any determination, decision or notice issued by the SEC.
- Appeals against disciplinary measures or sanctions by SEC such as suspension or barring participants from the market.
- Appeals against delisting of any securities or company by an exchange.
- Refusal by the Commission to register a takeover bid.
- Disputes/claims arising from misrepresentations or false statements in offer documents or in a securities transaction
- Disputes/claims between market participants.
- Enforcement orders of the directives of the SEC.
- Action for rescission of allotment.
- Action for payment out of the investor protection fund.
- Action for restitution.
Are there any similar Tribunals in the captial markets outside Nigeria
Yes. There are various markets abroad that implement similar Tribunals namely; Upper Tribunal of the United Kingdom, the Securities Appellate Tribunal (SAT) of India and the Hong Kong Market Misconduct Tribunal (MMT) are examples amongst others