The Consolidated Rules and Regulations 2011 of the Nigerian Securities and Exchange Commission permit companies to act as custodians of investors in the Nigerian capital market. The Rules define a custodian of securities as a "person who has custody, as a bailee, of securities or certificates issued in the investor's name with the investor's name appearing in the issuer's register as the beneficial owner of the securities." It states that such a custodian also includes "persons having custody of dematerialised and other securities on behalf of its clients." These provisions, among others, assume that an investor is better protected under the doctrine of bailment and is therefore worthy of consideration.
September 24 2012