Investors in the nation’s capital market will from next week pay to register for electronic dividend mandate as the Securities and Exchange Commission (SEC) free e-dividend mandate enrolment effectively ends today, December 29th, 2017.
The e-dividend mandate registration is meant to curb the growth of unclaimed dividend in the capital market. In order to encourage investors to register, the commission had offered to underwrite the cost of e-dividend enrolment till 30th December, 2017.
In a recent statement, SEC disclosed that e-dividend enrolment exercise, which commenced in 2016, has led to 48 percent of investors registering their bank accounts for e-dividend payments. The commission stated: “Arising from this exercise, over N30 billion which was hitherto unclaimed has so far been credited to respective bank accounts of investors.”
The free e-dividend enrolment was earlier schedule to end June 30, 2017, but the commission extended the deadline by six months to December 31st 2017 to allow more investors to register. To facilitate the e-dividend registration exercise, the SEC provided a platform for all investors that are yet to register to search for their names.
While highlighting the benefits of the e-dividend, SEC stated:“It allows shareholders to receive subsequent dividend(s) directly into their bank accounts; it allows the payment of accumulated dividend into ones bank account; it limits spate of dividend being declared missing as result of wrong address.
All the above amongst others will stem the rising unclaimed dividend in the capital market. This decision underscores SEC strong focus on market development and enhancement of investor confidence.”