Insightful News


We are an addiction for those who love reading.


Insightful News

SEC: E-dividend registration will spice up liquidity


The Securities and Exchange Commission, SEC, has enjoined extra Nigerians to take advantage of the on-going e-dividend registration in a bid to cut back the unclaimed dividends profile in addition to increase liquidity within the capital marketplace and the economic system.

Acting Director General of the SEC, Mary Uduk, said this at an Enlightenment program on e-Dividend and recent problems within the Nigerian Capital Market held in Enugu, Thursday.

The tournament which had as its Theme: “Current Initiatives by the Securities and Exchange Commission, SEC Nigeria to Enhance Investor Value” drew contributors from quite a lot of segments of the society.

Represented via the Head, Port Harcourt Zonal place of business of the SEC, Obi Adindu, Uduk disclosed that the Commission is these days main all of the capital marketplace business so that you could migrate all shareholders to an E –Dividend regime.

According to her, “The essence of the E-Dividend Mandate Management System is to eliminate or cut back to the barest minimal the occurrence of unclaimed dividend. Unclaimed dividend is an unwanted characteristic of the Nigerian capital marketplace which denies traders/shareholders the gains of collaborating within the capital marketplace. It denies the economic system get entry to to the large amount of cash which will have to have collected to shareholders and would have long past into circulate to grease the wheel of the economic system.

“It is a outcome of the bottlenecks that are inherent within the erstwhile paper dividend warrant regime such as postal machine inefficiency, exchange in traders’ addresses, deficient constancy and human fallibility in dividend cost processes, among others.

She said that the E–Dividend regime bypasses those barriers via making sure that dividends which don’t exceed 12 years of factor are credited without delay to an traders account after declaration via the paying corporate and inside a stipulated cost length via easy interbank switch.

The E-Dividend registration workout began on November 23, 2016. Each a success registration cost N150, alternatively, between that point and March 31, 2018, the Commission underwrote the registration cost for all traders that mandated. It is my excitement to tell us, {that a} general of two.4million accounts were mandated.

“May I subsequently implore you all to key into the E-Dividend registration workout via visiting the closest financial institution department or registrar. In addition to migrating to the E–Dividend regime yourselves, kindly inform everyone you realize to do identical of their easiest hobby.

“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 said.

Uduk additionally disclosed that the SEC is imposing quite a lot of tasks that are aimed toward making our marketplace deeper, colourful and simpler.

According to her “The forbearance window for shareholders with more than one subscriptions has been prolonged via any other year from the December 31, 2018 time limit in the past communicated. Consequently, we enjoin those that have no longer come ahead for the regularization of stocks bought with more than one identities, to take action.

“We have also developed a two-pronged approach to addressing the intractable challenges associated with transmission of shares related to the estate of deceased investors. The first step would involve engagement with and enlightenment of the Probate Registry with a view to providing solutions to the cumbersome process of transmitting shares. Secondly, Rules would be developed around the time frame for transmission shares and the fee structure”.

(function(d, s, id){
var js, fjs=d.getElementsByTagName(s)[0];
if(d.getElementById(id)) return;
js=d.createElement(s); js.id=id;
js.src=”http://connect.facebook.net/en_US/sdk.js#xfbml=1&appId=433175356887289&version=v2.3″;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source hyperlink

Leave a Reply

Your email address will not be published. Required fields are marked *