SEC urges investor to register for e-dividend payment

 

 

AS part of measures to curb the growth of unclaimed dividend in the Nigerian capital market, the Securities and Exchange Commission (SEC) has urged all investors to registered for payment of their dividends electronically.
Though, SEC late last 2016 pegged the value of unclaimed dividend at about N60.7 billion.
To facilitate the e-Dividend registration exercise, the Commission provided a platform for all investors that are yet to register to search for their names in the portal.
According to SEC, all investors, whose names appear in the search engine are advised to urgently contact the nearest branch of their bank or registrar to register for the collection of their unclaimed dividends and subsequent dividends electronically, as well as for the direct cash settlement of proceeds from secondary market transactions, to be credited to their preferred bank account.
SEC however called on members of the investing public to ascertain their registration status by clicking on Unregistered Investors for e-Dividend.
The Commission also reminded the investing public on the deadline of 30th June, 2017, which will mark the end of issuance of physical dividend warrant, with a view to mitigating the risks associated with physical dividend warrants and improving investors’ experience.
“The 30th June, 2017 dateline will see the end of free registration of e-dividend, being bank-rolled by the Commission since the inception of the exercise in November, 2015. Hence, members of the investing public are encouraged to urgently key into the on-going free registration period”, SEC said.
Commenting on SEC efforts in strengthen Nigerian capital market, a shareholder leader, Dr. Faruk Umar said the decision by SEC to establish unclaimed trust fund is a welcome development, as most of the dividend has not been claimed for several years due to multiple application and death of shareholders.
According to him, we are supporting the idea because SEC has come up with good policies that will perhaps eliminate unclaimed dividend like the stoppage of printing dividend warrants .
Faruk explained that, the trust fund is not going to be handled by SEC or any government agency, but a committee comprising all stakeholders .
In the past , attempts were made by SEC to establish the fund which we objected to in view of the fact that measures to curtail the accumulation of the unclaimed dividend were not put in place, he said.