Regulatory Alerts2017-06-29
Extension of Deadline for Physical Dividend Warrants and Free e-Dividend Registration
The Nigerian Securities and Exchange Commission has extended the physical dividend warrant discontinuation deadline to December 31, 2017, and will continue underwriting e-Dividend enrollment costs until that date. This measure supports approximately 2.2 million registered investors and aims to curb unclaimed dividends by ensuring all accrued payments are credited directly to bank accounts. Market participants must complete their e-Dividend registration with bankers or registrars before the extended deadline to secure these electronic payment benefits.
Following numerous requests received from the investing public, the Securities and Exchange Commission is pleased to announce that the deadline of June 30, 2017 for discontinuance of issuance of physical dividend warrants has been extended to December 31, 2017. This will mark the end of conventional issue of physical dividend warrants to shareholders of public companies in the Nigerian capital market. Furthermore, in a bid to curb the growth of unclaimed dividend in the capital market, the Commission will continue to underwrite the cost of e-Dividend enrolment till December 31, 2017. So far, about 2,200,000 (Two Million, Two Hundred Thousand) investors have mandated their accounts through the e-dividend platform. The advantage of the e-Dividend is not only to enable investors collect subsequent dividends electronically but it allows all accrued dividends to be credited to investors’ bank accounts. This will stem the rising unclaimed dividend in the capital market. This decision underscores the Commission’s strong focus on market development and enhancement of investor confidence. All investors in the Nigerian Capital Market are therefore advised to take advantage of this extended grace period by approaching their Bankers or Registrars for enrolment before the deadline. Signed Management 29th
June, 2017