Tribubal Chairman Canvasses Stable ,sustainable Stock Market Laws

The Chairman of the Investments and Securities Tribunal (IST), Siaka Isaiah Idoko-Akoh, has appealed to Senators and Members of the House of Representatives to give the Capital Market industry a law that can stand the test of time.

In a presentation at the public hearing on the “Bill to Amend the Investments and Securities Act (ISA 2007) and Matters Connected Therewith”, hosted by the Senate Committee on Capital Market ,the Tribunal chair also appealed to other stakeholders like the regulators, self-regulatory organizations (SROs), shareholders, investors and market operators to share in the responsibility for an enduring legislation.

“We make this call bearing in mind the acrimonious disagreements that arose during the amendments to the ISA (1999) when each of the capital market institutions preferred to preserve its individual corporate interests, he stated, adding that ever since the enactment of the ISA (2007), the CEOs, Boards and Managements of the stakeholder agencies have changed many times over.

“But the market is still there. Therefore, the challenge before all of us today is to come out with a law that will promote the market beyond our present tenures’, the Tribunal chairman said in a statement issued on Sunday.

He commended the present crop of managers whose initiatives have led to the establishment of new exchange intermediaries like the Financial Markets Dealers Quotes (FMDQ OTC) and the National Association of Securities Dealers (NASD), adding that there was still a lot of room to deepen the market and enhance its contribution to the national GDP.

Recommending changes to the draft amendment bill which was put together by the Securities and Exchange Commission (SEC) and some industry nominees at a time the IST was dissolved and remained inactive for two years, the Chairman said the draft Bill produced by the SEC Committee unfairly blindsided the IST and appealed to the lawmakers to take notice of the views of the IST on areas affecting it because the Tribunal wears the shoes and feels the pinches.

“The Investments and Securities Tribunal is the brain-child of the SEC, market operators and investors in their desire to see a market environment free from operational and legal disabilities. Over the past fifteen years, the IST has lived up to its mandate even in the face of very daunting challenges.

“As the first specialized court for the capital market in Sub-Saharan Africa, the Tribunal has been adjudged as highly innovative and earned positive commendation by global players like the US Securities and Exchange Commission.

The Steve Oronsaye Panel on the re-organization of Federal Government Agencies and Parastatals emphasized the essential nature of the Tribunal. Here and there calls are being made for the establishment of Special Courts in other areas of our national life.”

He said though there has been positive consensus on the desire for the IST and other specialized courts, in practical terms, there has not been strong commitment to the need to effectively fund the Tribunal.

“We are the only court with a mandate to start and conclude cases within three months demanding intensive and diligent case flow management and constant movement of trial Members (Judges) across the zonal offices. The small budgetary allocations to the Tribunal are released several months in arrears.

Even the extra-funding approved for the Tribunal from market transaction fees are not remitted on time. We need our share of this fund to be disbursed directly to our account from the platform like other stakeholders.

Therefore, our position is that this legislation should fill in the gaps in the funding of the Tribunal to help it succeed,” the Chairman noted.

Idoko-Akoh differed with the draft provision to turn the IST to a single Judge court sitting in the various zones with only lawyers as members, arguing that a collegiate court sitting as mixed panels of lawyers and specialized experts is better equipped to deal with the subject matter of stock market transactions and also eliminate the likelihood of corruption in justice delivery.

The Tribunal also objected to the provision to take the Tribunal under the supervision of the National Judicial Council because the move will dilute its essential character as a fast-track executive court and defeat the original intent of its establishment.

Also, the provision for it to assume and exercise criminal jurisdiction was rejected by the Tribunal with the argument that rigorous observance of criminal procedure rules during such trials could delay the prompt resolution of civil cases to enhance business and economic development.