SEC to end issuance of e-dividend warrant by June 2017

SEC to end issuance of e-dividend warrant by June 2017

The Securities and Exchange Commission (SEC), has directed all registrars operating in the Nigerian capital market to end the issuance of e-dividend warrant to investors by June 31, 2017. This, according to the commission, will compel retail investors to embrace the exercise and stem the rising unclaimed dividend in the capital market, which is currently put at N80 billion. E-dividend is an electronic dividend payment which will enable an investor’s account to be credited after 24 hours that dividend is paid.

The Director General of SEC, Mounir Gwarzo, while addressing journalists during the post Capital Market Committee (CMC), second quarter press briefing, held in Lagos yesterday, bemoaned the low level of patronage on e dividend registration in the market, noting that only 6,000 investors have accessed the platform.

To encourage more participation in the exercise, the SEC boss explained that the CMC has agreed that all banks should appoint an e-dividend champion that would interface with retail investors to ensure a seamless registration. According to him, the e dividend champions would forward all issues associated with the registration to Nigerian Interbank Settlement System (NIBSS), to give clarifications on the issues within three days. He added that the SEC has also extended the write off period for free registration process from September 14th to December 31, 2017 to enable more investors to partake on the exercise…Read more

About The Author

Osigweh Lilian Oluchi is a graduate of the University of Lagos where she obtained a B.A (Hons) in English, Masters in Public and International affairs (MPIA). Currently works with 1stnews as a Database Manager / Writer. [email protected]

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