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Implementation of e-Dividend Mandate System begins

By on September 24, 2015

Electronic dividend (e-dividend) payment has received a boost as the Securities and Exchange Commission (SEC) informed the investing public that enrolment can now be efficiently conducted at bank and registrar branches nationwide through the online platform.

SEC, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS), had launched the e-dividend payment platform to address the rising incidence of unclaimed dividends in the Nigerian capital market.

SEC said the implementation of the platform has begun with the release of e-DMMS portal by CBN to all banks on September 114, 2015.

The e-Dividend Mandate Management System (e-DMMS) portal utilises NIBSS’ robust Document Management System to which completed e-dividend mandate forms filled by the investor could be uploaded. The e-Dividend form can be obtained and properly filled at bank branches or in the office of a registrar.

According to SEC, where an investor opts to fill this form at a registrar’s office, the Registrar shall verify details such as the investor’s name, account number and Clearing House Number (CHN).

“The completed form shall then be uploaded to the e-DMMS portal for immediate access by the investor’s chosen bank. The bank is required to validate the investor’s Bank Verification Number (BVN) and other account details. Should an investor choose to complete the e-Dividend mandate form at his bank branch, the bank shall validate his/her BVN and account details before uploading a scanned copy of the form to the e-DMMS portal. This uploaded form would immediately be accessible to the investor’s chosen Registrar who is required to validate the investor’s name, shareholder account number and Clearing House Number (CHN),” the commission said in a statement.

SEC enjoined all shareholders who are yet to be fully enroll for e-dividend payment are  to take immediate steps to fill the mandate form at their chosen bank or registrar branch.

The commission commend the CBN and NIBSS for showing strong support for this scheme, adding  that banks have equally shown high commitment to implement the scheme as well.

According to SEC, registrars have been directed to ensure that all their offices are properly equipped to enroll shareholders who would be approaching them for the exercise.

 

[ThisDay]