Making Investments and Securities Tribunal work

The Investments and Securities Tribunal is an independent specialized judicial body established under section 274 of the Investments and Securities Act (ISA) of 2007 to adjudicate on and interpret all market and investments controversies arising under the Act and the rules and regulations.Besides, the tribunal is empowered in line with section 284 of the Investments […]

The Investments and Securities Tribunal is an independent specialized judicial body established under section 274 of the Investments and Securities Act (ISA) of 2007 to adjudicate on and interpret all market and investments controversies arising under the Act and the rules and regulations.
Besides, the tribunal is empowered in line with section 284 of the Investments and Securities Tribunal to the exclusion of any other court of law or body in Nigeria jurisdiction to hear and determine any question  of law and dispute involving a decision or determination of the commission in the operation and application of the Act relating to dispute between capital market operators and their clients,investor and securities exchange and etc.
Speaking in Lagos at a stakeholder forum recently, Chairman of IST, Dr. Ngozi Chianakwalam said the tribunal has hitherto adjudicated on about 256 in addition to the complaints/cases resolved through its alternative dispute resolution window with monetary claims worth N351.9billion.
Some of the cases are CSCS Limited and others V. Bonkolans Investments Limited and 5 others in suit number IST/OA/03/03, Chief Ezemgbe Livinus V. Nigerian Stock Exchange and others, Nova Securities Limited V SEC, Folarin Gbadebo Smith and 33 others V. FBN Plc and for others.
According to her, the cases prosecuted by the tribunal has to some extent helped in restoring investors’ confidence in the nation’s capital  market.
There are concerns that the tribunal established pursuant to section 274 of the ISA 2007 is unconstitutional, illegal and null and void on the premise of being conferred with jurisdiction which has already been exclusively conferred upon the Federal High Court  by section 251 of the 1999 constitution.
Stakeholders also said the judgments,decrees,orders and other acts of the tribunal from its inception till now are unconstitutional and illegal.
But Managing Partner, Alliance Law, Uche Obi, regretted that despite the clear provisions of section 315(4)(b) and 316(1) of the 1999 Constitution ,some practitioners are continually raising eyebrow about the constitutionality of the tribunal.
He explained that the Investments and Securities Tribunal was established by section 274 Investments and Securities Act which remain an existing law in the country.
Similarly, Dr. Ngozi Chianakwalam said the tribunal was established pursuant  to the powers of the National Assembly to make laws as guaranteed by section 6(4) of the 1999 Constitution, which gives the National Assembly or any House of Assembly powers to establish courts other than the ones which section six relates.
She said Cection 6(5)(j) of the 1999 constitution which recognizes in addition to the listed courts ,such other courts as may  be authorized by law to exercise jurisdiction on matters with respect to which the National Assembly may make laws,lends credence to the legitimacy of the tribunal .  
She however said remuneration and funding are major challenge of the tribunal, such that it is becoming increasingly hard to meet its obligations.
And in order   to overcome the challenges, she suggested that the remuneration and condition of service of the tribunal’s chairman, members and Chief Registrar be benchmarked with that of the Federal High Court in line with section 280 ISA of 2007.
She suggested the inclusion of the tribunal as a superior court in the 1999 Constitution.
Speaking at a form in Lagos, Uche Obi, who is also the Chairman of Capital Market Solicitors’ Association, advocated the need to amend section 285 of the Investments and Securities Tribunal to expand the scope of sources of funding of the Tribunal to enable it play more effectively its role of building and sustaining confidence of investors.
He said the tribunal should be made a part of a national rolling plan for a continuous period of three years to enable it stand on its feet.
He further suggested the need to carry out a fine calibration of the role the tribunal can play in addressing oversight over the regulator as well as the determination of private rights between operators or operators and their clients.
According to him, there is need to delineate the jurisdiction of the tribunal from the Federal High Court as well as create more divisions of the tribunal nationwide.
He said members of the Investments Securities Tribunal should be full-time and must be persons with requisite knowledge and expertise in capital market regulations or operations as well as persons of proven integrity.
Accordingly, funding of the Investments and Securities Tribunal’s should come from the consolidated funds like the regular courts.