The Securities and Exchange Commission (SEC) has enjoined more Nigerians to take advantage of the on-going e-dividend registration in a bid to reduce the unclaimed dividends profile as well as increase liquidity in the capital market and the economy.
Acting director- general of the SEC, Mary Uduk, stated this at an enlightenment program on e-Dividend and contemporary issues in the Nigerian capital market held in Enugu,yesterday.
The event which had as its Theme: “Current Initiatives by the Securities and Exchange Commission, SEC Nigeria to Enhance Investor Value” drew participants from various segments of the society.
Represented by the head, Port Harcourt zonal office of the SEC, Mr. Obi Adindu, Uduk disclosed that the Commission was currently leading the entire capital market industry in an effort to migrate all shareholders to an E –Dividend regime.
According to her, “The essence of the E-Dividend Mandate Management System is to eradicate or reduce to the barest minimum the incidence of unclaimed dividend. Unclaimed dividend is an undesirable feature of the Nigerian capital market which denies investors/shareholders the gains of participating in the capital market. It denies the economy access to the huge amount of money which should have accrued to shareholders and would have gone into circulation to oil the wheel of the economy.
“It is a consequence of the bottlenecks which are inherent in the erstwhile paper dividend warrant regime such as postal system inefficiency, change in investors’ addresses, poor fidelity and human fallibility in dividend payment processes, amongst others.”
She stated that the E–Dividend regime bypasses these limitations by ensuring that dividends which did not exceed 12 years of issue were credited directly to an investors’ account after declaration by the paying company and within a stipulated payment period through simple interbank transfer.
The E-Dividend registration exercise started on November 23, 2016. Each successful registration cost N150, however, between that time and March 31, 2018, the Commission underwrote the registration cost for all investors that mandated. It is my pleasure to let us know, that a total of 2.4million accounts had been mandated.
“May I therefore implore you all to key into the E-Dividend registration exercise by visiting the nearest bank branch or registrar. In addition to migrating to the E–Dividend regime yourselves, kindly tell everybody you know to do same in their best interest.
“I am informed that some registrars are present at this forum. I implore us to visit them and take advantage of the services they are providing to register for your E-Dividend, here and now,” she stated.
Uduk also disclosed that the SEC was implementing various initiatives which were aimed at making the market deeper, vibrant and more effective.
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