Review 2.1 Section 4 of the Bill introduces two new subsections (3) & (4) into Section 20 of the Act. By the proposed Section 20 (3) of the Bill, a fully Nigerian owned enterprise is required to register with the Commission once it has any foreign participation in its ownership. The enterprise is required to apply and register with the Commission within 14 days from the date of such foreign participation. 2.2 Section 4 also introduces a proviso to Section 20 of the Act. The proviso excludes the requirement of registration in respect of any portfolio investment made through the purchase of securities from the stock exchange. The Bill expressly excludes portfolio investments as constituting “doing business” for the purposes of registration. The implication of the foregoing provision is that only foreign participation arising from direct foreign investment or any portfolio investment which is not through the stock exchange require registration with the Commission. 2.3 The proposed Section 20 (4) of the Bill imposes a penalty on an enterprise with foreign participation for failure to register with the Commission. This subsection proposes a fine not exceeding N10, 000 on such enterprise for each day of default. The Act currently does not impose any penalty for failure to comply with its provisions. The addition of penalty transcends the Act from being one which appears merely to oblige enterprises with foreign participation to register with the Commission, to one which penalizes failure of required enterprise to register. www.sskohn.com 2 3. Conclusion 3.1 With the introduction of a penalty provision in the Act, it is anticipated that the level of compliance with the provisions of the Act will increase. It is however uncertain if these amendments will enhance the efficiency of the Commission and will improve or promote Nigeria as an investment destination, that being the goal of the Act.