BY MARK ITSIBOR, Abuja
The Securities and Exchange Commission (SEC) has again urged investors in the capital market to register for e-dividend so that they can receive the benefits of their investments in the capital market.
This was stated by commissioner in charge of operations at SEC Mr. Dayo Obisan in a statement that was issued yesterday.
e-Dividend is the process of paying dividends due to shareholders through a direct credit into their chosen bank account electronically rather than the issuance of dividend warrant through the postal system.
Obisan said the registration is necessary to reduce the unclaimed dividends profile as well as increase liquidity in the capital market and the economy.
He disclosed that the e-dividend mandate forms are available on the websites of the SEC, registrars and even in some banking halls and therefore enjoined investors to download the forms, fill them out and submit to be mandated for e-dividend.
“The forms are readily available on the SEC website, the registrars also have the forms on their websites, even some banks have them in their banking halls. We therefore enjoin investors to download the forms, fill them out and submit, if they have any problems, they can readily reach the SEC through our various contacts. Once we receive such complaints, we will be able to put them in the right part of what to do to ensure they are mandated for e-dividend.
“Remember that they are not only going to receive their current dividend. Once they are successfully mandated, past dividends will be paid as well. We want investors to be able to get the benefits of their investments as that would also help to attract more investors to the market as well as deepen the market,’’he said.
The executive commissioner also said it is the quest by the Commission to protect investors that necessitated the directive on Know Your Customer Update to Capital Market Operators.
The SEC recently reminded Capital Market Operators of the Commission’s directives on update of investors’ Know Your Customer information which it said is still in effect describing the exercise as critical to deepening the participation of retail investors and therefore directed all CMOs to accord it the highest level of priority.