SEC extends free e-dividend registration

Securities and Exchange Commission (SEC) has extended the period for the free e-dividend registration exercise till February 28, 2018 to encourage more shareholders to mandate their bank accounts for the direct payment of dividends.

SEC stated that the decision to extend the free registration was taken after a review of the shareholders’ responses by the initial December 31, 2017 deadline. SEC noted that at the expiration of the December 31, 2017 deadlines, there was still a great influx of shareholders desirous of mandating their bank accounts for payment of dividends electronically.

“In light of the foregoing, the SEC, as part of its developmental role, has extended the period for the FREE e-Dividend registration exercise till February 28, 2018, to encourage more shareholders to mandate their bank accounts. Accordingly, shareholders that are yet to register should continue to approach their banks or registrars to mandate their bank accounts for the collection of their dividends electronically, including unclaimed dividends, not exceeding 12 years of issue,” SEC stated.

Recall that the SEC had announced that the e-dividend registration exercise would continue seamlessly in spite of the expiration of the initial December 31st 2017 Free registration deadline.

Acting Director General of SEC, Dr. Abdul Zubair, who made the announcement at a press briefing recently, said that all Investors that are yet to enroll, are enjoined to continue with the registration exercise.

Read also: NSE LIVE! Equities falter as profit-taking shaves N13bn

He said “Such investors should continue to approach their Banks or Registrars, as usual, to seamlessly mandate their Bank Accounts for the collection of their Dividends electronically, including unclaimed dividends, not exceeding 12 years of issue.

Zubair also announced an extension of the Forbearance window for Multiple Accounts Consolidation to March 31, 2018.

According to him “With a view to encouraging many more investors to consolidate their multiple subscriptions into one account, the SEC wishes to announce an extension of the forbearance for Multiple Accounts till 31st March, 2018.

“Accordingly, investors that bought shares of the same company during public offers, using different names, are allowed till 31st March, 2018 to continue to approach their Stockbrokers or Registrars, to regularize their shareholdings, in line with SEC Rules on customer identification. Thereafter, all shares NOT regularized shall be transferred, on trust, to the Capital Market Development Fund”.

The Acting DG disclosed further that in line with approved rules of the Commission; all Registrars have been directed to stop the issuance of dividend paper warrants with effect from January 1, 2018.

He noted that for the avoidance of doubt, all paper dividend warrants issued up till December 31, 2017 are valid and should be honoured. Banks and Registrars are accordingly implored to please note and adhere.

In his comments, Director External Relations of the SEC. Mr. Henry Rowlands disclosed that the SEC has consulted with other stakeholders to ensure that the process is seamless; adding that investors should entertain no fear of being charged until their registration is approved.

He however explained that, “Where the investor’s account is not funded, the parties have agreed that such an enrolment request will be disapproved because the account is not funded and the investor will be alerted accordingly”.

 

RipplesNigeria… without borders, without fears

Click here to join the Ripples Nigeria WhatsApp group for latest updates.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now