SEC to abolish dividend warrant by June 2017

By Kayode Ogunwale

 

The Securities and Exchange Commission (SEC) has intensified strategy to eliminate unclaimed dividend in the Nigerian capital market.

Speaking at the post medial briefing of second quarter Capital Market Committee (CMC) meeting in Lagos, Director General of SEC, Mounir Gwarzo said the commission would stop issuing of dividend warrant by June 30, 2017.

To reduce unclaimed dividend in Nigeria which is pegged at about N90 billion, SEC launched the electronic dividend portal in December 14, 2015.

Gwarzo said, the market stakeholders in capital market have agreed to put an end to dividend warrant to allow elimination of unclaimed dividend.

He explained that despite the efforts put in place to encourage investors to take advantage of e-dividend platform, only 6000 have registered based on the data with Nigeria Inter-Bank Settlement System Plc, (NIBSS).

According to him, “we’ve envisaged that by now we will have a million shareholders register for unclaimed dividend.”

Gwarzo said the banks have agreed to appoint e-dividend champions in their various branches, also all registrars will appoints e-dividend champion to be headed by the company compliance officers. “We have agreed with the banks and registrars to resolve issues pertaining to some of the challenges within three or four days of the complaints”, he said.

He said CMC has set up a committee to address the unclaimed dividend particularly those that have spent 12 years and above, that are statutory bar.

He said the CMC have met with Vice President of Nigeria, the Speaker of House of Representatives and the Anthony General of the Federation to ensure their supports to implement capital market master plan successfully.

Every stakeholders in capital market is ready to assists to archive goals and development of the capital market, he said.