…………….Extends Period is free of charge
L-R: Executive Commissioner, Legal & Enforcement, Securities and Exchange Commission (SEC), Mrs Sa’adatu Mohammed Bello; Director General SEC, Mounir Gwarzo; MD/CEO Central Securities Clearing System Plc (CSCS), Kyari Abba Bukar and General Manager IT & Operations, CSCS, Joseph Mekiliuwa at the SEC second quarter capital market meeting press briefing held in its Lagos.
Due to huge succcess in ruducing the backlog of unclaimed dividends within the short period of campaign The Nigerian, Securities and Exchange Commission (SEC) has notified the investing public that it will continue to underwrite the cost of E-Dividend enrolment till 30th June, 2017.
The Commission further stated that over the sum of N30b has so far been paid to investors in the Nigerian capital market from the backlog of unclaimed dividends.
SEC reiterated that “With a view to ensuring all investors benefit from the E-Dividend programme free of charge, the Commission had committed to pay the cost of enrolment throughout the year 2016, and had resulted in getting about 48% of investors to enroll for the e-dividend payments. Arising from this exercise, over N30 Billion which was hitherto unclaimed have so far been credited to respective Bank Accounts of Investors.
Therefore, the advantage of the e-dividend is not only to enable investors collect subsequent dividends electronically but it allows all accrued dividends be credited to investors’ Bank Accounts.
“The Commission has however observed with concern the challenges being experienced by investors in the course of the e-Dividend registration and therefore commits to further defray the cost of registration till June 30th, 2017 to enable investors continue to enjoy the free registration” the SEC stated.
The SEC also reminded the investing public that at the expiration of the free registration period, Dividend warrants will no longer be issued as it would be replaced with electronic dividend payments.
This decision underscores the Commission’s strong focus on market development and enhancement of investor confidence. All investors in the Nigerian Capital Market are therefore advised to take advantage of this extended grace period by approaching their Bankers or Registrars for enrolment before the deadline.
E-dividend payment platform was introduced to address the rising incidence of unclaimed dividends in the Nigerian capital market.
It is also expected to address the lingering problem of unclaimed dividends, which the market had sought solution for the past 20 years.
It was recalled that SEC DG, Mounir Gwarzo had recently said that efforts made by the commission to ensure that the era of stale dividends and huge unclaimed dividends in the market become a thing of the past was already achieving result with the e-dividend registration system.
“When we started the e dividend, the major challenge was for people to key into the e dividend mandate. There are unclaimed dividends that have not been claimed, the registrars have been compelled to pay all the arrears of unclaimed dividends.
“In this country, we have never had this kind of initiative that has reduced unclaimed dividends like we had today. Apart from the investor getting his dividends where ever he is, that investor will be able to get dividends that in the last five years he has not been able to get. The e-dividend is for the interest of retail investors” he added.