The correct option is C. SEC (Securities and Exchange Commission). Explanation of the Correct Answer The Securities and Exchange Commission (SEC) is the primary regulatory body responsible for overseeing and controlling the activities of the Nigerian Stock Exchange (NSE). Here’s a detailed breakdown of why SEC is the correct answer:

1. Role of SEC: The SEC is tasked with protecting investors, maintaining fair, orderly, and efficient markets, and facilitating capital formation. It ensures that the securities market operates in a transparent manner, which is crucial for investor confidence and market integrity.
2. Regulatory Framework: The SEC establishes rules and regulations that govern the operations of the stock exchange, including the listing of securities, trading practices, and the conduct of market participants. This regulatory framework is essential for preventing fraud and ensuring that all market participants have access to the same information.
3. Enforcement: The SEC has the authority to enforce compliance with securities laws and regulations. This includes investigating violations, imposing penalties, and taking legal action against individuals or entities that engage in fraudulent or unethical practices.
4. Market Development: Beyond regulation, the SEC also plays a role in the development of the capital market in Nigeria. It promotes initiatives that enhance market efficiency and accessibility, which ultimately benefits investors and the economy as a whole.

Explanation of Why Other Options Are Incorrect

• A. CBN (Central Bank of Nigeria): The CBN is the apex bank in Nigeria responsible for monetary policy, financial stability, and the regulation of banks and other financial institutions. While it plays a crucial role in the overall financial system, it does not regulate the stock exchange directly. Its focus is primarily on banking and monetary issues rather than securities markets.
• B. BPE (Bureau of Public Enterprises): The BPE is responsible for the privatization and commercialization of government-owned enterprises. Its mandate is not related to the regulation of the stock market or the activities of the Nigerian Stock Exchange. Therefore, it does not have any regulatory authority over securities trading.
• D. NDIC (Nigeria Deposit Insurance Corporation): The NDIC provides deposit insurance to protect depositors in the banking sector. Similar to the CBN, its focus is on banking and does not extend to the regulation of the stock market or the activities of the NSE.

Summary of Key Points

• The Securities and Exchange Commission (SEC) is the regulatory body for the Nigerian Stock Exchange.
• SEC ensures market integrity, protects investors, and enforces compliance with securities laws.
• Other options (CBN, BPE, NDIC) focus on banking, privatization, and deposit insurance, not stock market regulation.
• Understanding the roles of these institutions is crucial for grasping the regulatory landscape of Nigeria's financial markets.

This comprehensive understanding of the SEC's role in regulating the Nigerian Stock Exchange will help you in your studies and any related examinations.