DISPUTE RESOLUTION AT CAPITAL MARKET

The controversy in Nigeria over jurisdiction between the Federal High Court and the Investment and Securities Tribunal (IST) dominated the judges workshop organised recently at Abuja but could not be resolved because it is a constitutional matter.
Both legal authorities were created by law but in recent times have had conflicting positions on jurisdiction over disputes emanating from the capital market.
As per the Nigerian constitution, the Federal High court has jurisdiction over such matters but the IST was set up by law in 2007 as a special tribunal to handle the same disputes.
At the judges workshop organised between February 24 and 25, most papers presented touched on the controversy particularly the ones presented by Professor Konyiosola Ajayi; Dr Ngozi Chianakwalam and Justice Abdu Kafarati.
The general consensus was that the conflict exists and it is not healthy for the capital market.
In the keynote paper by Professor D. S Sangha of Warwick university the issue was not specifically mentioned but by calling for enforcement strategy built around relationship between regulator and regulated that does not take legal channels as first option, the special nature of such disputes from the market was obvious.
In the end, participants at the workshop tried to address the matter through various recommendations. They resolved that the role of the judiciary in maintaining the integrity of the market can not be overlooked but also advised that:
1) Issues for judicial review of SEC's administrative proceedings committee (APC) and IST decisions be addressed in ways to preserve and enhance the integrity of the dispute resolution mechanism of the market.
11) A reform agenda for the IST be urgently instituted to address jurisdiction, funding and constitution of the tribunal and until then, stakeholders should support the IST as a legal body set up purposely for the capital market.
111) Judicial pronouncements on the capital market be progressive and injunctions that inhibit the regulator's powers to sanction erring operators be granted only after careful analysis of likely impact on investor confidence
1V) There should be judicial deference in capital market matters for position of regulatory institutions
V) Above all, that formal presentation be made to the National Assembly for either streamlining the powers of the Federal High Court in respect to capital market matters or bringing the IST  under the appellate purview of a specialised division of the High Court.
In attendance were justices of the court of appeal, chief judges of states and judges of the Federal High Court with high powered representation from the Senate and the Federal House of Representatives.

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