The Securities and Exchange Commission (SEC) has announced midnight December 31, 2017 as the deadline for FREE e-Dividend Registration as well as termination of Dividend Warrant Issuance, by Registrars, as a means of paying the dividend component of profits declared by publicly quoted companies in Nigeria.
By this directive, January 01, 2018 will marked the commencement of full implementation of direct credit of dividends into mandated accounts of investors.
Registrars would, from the same date, be forbidden from issuing dividend warrants.
The statement therefore, enjoined Shareholders who are yet to mandate a bank account for the payment of their dividends to key into the on-going FREE registration exercise, for the collection of their dividends electronically, including unclaimed dividends, not exceeding 12 years of issue.
“The process requires investors to go to any branch of their Bank or Registrar’s office to obtain registration form, complete same, attach a passport photograph and drop off the completed form for processing. The FREE registration, sponsored by SEC, closes on 31st December, 2017.
“Furthermore, Investors that bought shares of the same company during public offers, using different names, are given forbearance up till 31st December, 2017, 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 statement explained.
It was further stated that, these are parts of SEC’s initiatives to further improve investors’ benefits and confidence in the Nigerian Capital Market.