Regulatory Alerts2016-12-22 | BPS/DIR/CIR/01/013Guidelines on Securities Settlement in Nigeria
The provided guidelines outline the best practices for electronic payment of dividends and interests in Nigeria. Here is a concise summary: - The primary objective is to ensure efficient, safe, and reliable electronic settlements for dividends/interests paid by registrars or stockbrokers acting as agents for shareholders. - CIS and NSE have the responsibility of approving and monitoring payment infrastructure services providers. - The Payment Infrastructure Service Providers should provide switching and settlement services, adhering to Nigeria Bankers Clearing House Rules and other applicable guidelines issued by the Central Bank of Nigeria (CBN) or Securities & Exchange Commission (SEC). - For tariff/charges, no charges shall be imposed on investors for electronic payment of dividends/interest. Charges for transactions should be agreed upon between Registrars/Stockbrokers and their banks. - The guidelines also outline a mechanism for resolving disputes related to securities settlement in accordance with relevant CBN, SEC, Exchange, CIS, and IST directives. - Sanctions may be applied by the regulatory bodies (CBN and SEC) in case of default or infractions related to securities settlements. The document also provides a glossary of terms for better understanding and a list of abbreviations.