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SEC puts total value of unclaimed dividends at N90bn

By on January 13, 2016

The Securities and Exchange Commission (SEC) on Monday disclosed that the total value of unclaimed dividends in quoted companies stood at N90 billion as at September 30, 2015.

Speaking in Abuja at the commencement of a 3-Day Sensitisation Road Show on E-Divided Registration, Head Marketing Development, SEC, Mr. Henry Adekunle Rowland said the essence of the sensitisation walk was to encourage investors to provide the necessary information so they could be able to claim their dividends electronically.

He said: “E-dividend means electronic dividend and dividend is the profit which an investor gets from the company which he has invested his money, what we are saying is that, go and register to collect your dividend electronically in your preferred bank.”

According to him, investors are expected to go to the bank or their registrars to fill a form which will contain certain information.

He added: “You will be required to give certain information like your passport photograph, account number whether savings or current and then your BVN. Your Central Securities Clearing System number will be required, if you are already dematerialized but if you are not, you will go with your share certificate number after which you will be validated using the Nigeria Inter-Bank Settlement System (NIBSS) portal where the e-dividend form is actually located.”

Adekunle further explained that after a successful validation, the completed forms would be sent to registrars of companies who would consolidate all the investors’ dividends and commence payment accordingly.

“The objective of this initiative he stated is to make sure that the N90 billion unclaimed dividend is depleted within the next six months after the completion of this exercise. “The exercise will be free for about three months and close in March, six months from that date, we expect that these N90 billion would have been fully depleted.”

He assured investors that the exercise would continue afterwards but investors would be required to pay a fee of N100 which according to him was not subject to review and is considered administrative cost for the banks and the NIBSS for warehousing the data.

“The investors do not even need to bother because they will just debit your account and you will not even know you are paying anything. Once an investor was successfully validated electronically, he needn’t bother to do any other form of validation afterwards as the exercise will be done once for life,” he added.

When fully implemented, e-dividend initiative would aid Direct Cash Settlement regime, increase market velocity and attract foreign investors.

Also speaking at the event, Head, Corporate Communications,  SEC, Naif Abdussalam, said the commission has directed all registrars of public companies to return all unclaimed dividends, which have been in their custody for 15 months and above to the paying companies.

“SEC also notified the public that enrolment for e-dividend payments could now be efficiently conducted at bank and registrar branches nationwide through the online platform launched on July 29, last year. We want to make sure that we take the message down to the grassroots. We want every Nigerian investor within this period of 90 days which is free to get registered because immediately after the 90 days, a fee of N100 will be charged. All you need to do is walk into a bank or Registrar’s office and you will be registered. Once you are registered, you will start getting alert for your dividends,” Abdussalam said.

 

[ThisDay]