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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