Shareholders with difference multiple account name to forfeit shares

 

 

 

THE Capital Market Committee (CMC) of the Securities and Exchange Commission (SEC) has concluded that investors with multiple account names that failed to ammonized their account would forfeit the shares and dividend.

This was revealed at first quarterly post-CMC meeting for the year 2017 held in Lagos.

The Director General of the SEC, Mr. Mounir Gwarzo who briefed journalist said the committee finalized that investors who joggled their names for the purpose of multiple subscription should be given a forbearance period of six months within which they can lay claims to both their shares and accruing dividends subject to establishment of their identity and a verification process by the SEC.

He said investors who failed to claim such shares and accruing dividends will forfeit them to the Nigerian Capital Market Development Fund (NCDMF).

Going forward, any person who engages in such act shall be prosecuted, he stated.

Speaking on ongoing e-dividend campaign DG said that a total of 2.2 million investors have registered for the e-dividend payment platform.

Gwarzo said that 2.2 million investors had mandated their accounts for the e-dividend payment policy as of April 30, 2017.

The SEC boss stated that the commission would direct all listed companies to participate in the on-going enlightenment campaign on e-dividend by informing their shareholders at Annual General Meetings on the processes put in place to increase the figure.

He further said that June 30, 2017 deadline for non-issuance of dividend warrants would not be extended and urged investors to embrace the e-dividend payment platform.

He said that the commission would continue to underwrite the cost of e-dividend registration for investors till June 30.

He explained further that the e-dividend form could be obtained and properly filled at bank branches or in the office of a registrar and stock broking firms, or could be downloaded and filled by individuals.

Gwazo revealed further that the main aim of the e-dividend payment system was to curb unclaimed dividends in the market, noting that the unclaimed dividend figure was reducing due to the e-dividend adding that the commission would inaugurate the Nigerian Capital Market Development Fund in the next CMC.

The fund initiated by SEC with a seed fund of N5 billion would not be managed by the commission but other operators, he said.