By Babajide Komolafe

As an investor in the Nigeria capital market, you must know about the Investment and Securities Tribunal. This is because you may one day need the services and authority of the Tribunal to resolve your investment problem. It is also important to be familiar with the rulings (judgements) of the Tribunal.

They are rich in lessons for investors and also for capital market operators. They are particularly helpful in preparing and protecting your investment from any tendency for foul play by market operators.  A classical example is the ruling of the Tribunal in the case of  Eze A. Eze vs Fidelity Securities Limited, Fidelity  Bank Plc, Securities and Exchange Commission (SEC), and First Registrars Limited.

Before we highlight the lessons from this ruling, a brief history of the IST is necessary.
The IST is an independent specialized judicial body. It was established to exercise the jurisdiction, powers and authority, to interpret the Investment and Securities Act (ISA) and adjudicate on disputes and controversies in capital market transactions.  In a statement posted on its website, the Tribunal explained the nature of its existence as follows:  “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.

Another fundamental difference between the Tribunal and other traditional law courts is that each party could represent himself or appoint a representative who is not a legal practitioner.
Procedure before the Tribunal is regulated by the Investments and Securities Act No. 29 of 2007 and the Investments and Securities Tribunal (Procedure) Rules 2003.”

The IST was established to ensure speedy resolution of disputes in the capital market. When there is a dispute, be it between an investor and an operator, or investor and another investor, or operator and another operator, instead of going to the traditional courts, where it could take years before the dispute is resolved, the parties should go to the IST. In fact you can take the Nigeria Stock Exchange or SEC itself to the IST.

That is what Mr. Eze Anoke Eze did.  In 2012, he instituted a case of negligence against Fidelity Securities Limited, Fidelity Bank Plc, Securities and Exchange Commission (SEC), and First Registrars Limited, in the verification of his FSB Staff Trust shares.  Thirteen (13) months after the tribunal ruled in his favour. In summary, it ruled that Fidelity Securities Limited, Fidelity Bank Plc and First Registrars Limited, “were liable for negligence in not exercising due diligence and professionalism thus occasioning the unwarranted delay in the verification and dematerialisation of the Applicant’s share certificate”

So there is hope for all investors who have been victims of unethical and unprofessional conducts of capital market operators. Take them to the IST.