ABUJA- Nigeria has introduced a custody rule for its 4 trillion naira ($9.7 billion) fund management industry, in a bid to protect investors and deepen the country's capital market, its Securities and Exchange Commission said on Sunday.

Before the new rule, investment managers warehoused securities and cash, which meant that investors could lose in the event of one being declared bankrupt or insolvent.

(Reporting by Felix Onuah and Chijioke Ohuocha; Editing by Alexander Smith) ((chijioke.ohuocha@thomsonreuters.com; +234 703 4180 621; Reuters Messaging: chijioke.ohuocha.thomsonreuters@reuters.net))