E-dividend payment -Specific responsibilities for stakeholders
To aid implementation, various stakeholders are saddled with the following responsibilities.
Securities and Exchange Commission (SEC)
- Release rules and guidelines on e-dividend
- Roll out enlightenment programmes
- Direct Registrars to put Information and Communications Technology (ICT) infrastructure.
- Direct Companies to incorporate e-dividend in their Annual General Meeting (AGM) notices.
- Organise formal launching of the e-dividend payment system.
Nigerian Stock Exchange (NSE)
- Modify share transfer form to incorporate e-dividend payment information
- Give circular, directing companies to incorporate e-dividend information on AGM notices.
Central Securities Clearing System (CSCS)
Ensure that all transaction updates for the closure of registers get to Registrars at the due date.
Liaise with Nigerian Interbank Settlement System (NIBSS)
- Meet payment obligations immediately after AGM, failure to do so will attract sanctions.
- Include e-dividend forms requesting for shareholders accounts details for e-dividend payment in the notices of companies AGMs
- Compile list of interested shareholders
- Update their ICT systems to ease linkage to NIBSS platform
- Educate shareholders on benefits of e-dividend payment system and provide current account information.
- Send notices of dividend payments to shareholders via SMS, e-mail etc.
- Modify share transfer form to include bank account and other details to facilitate e-dividend payment.
- Work with Registrars to prepare a standardised e-dividend payment data form for completion by every shareholder
- Provide evidence of tax payment on dividend by shareholders post on (website)
Nigerian Interbank Settlement System
- Together with Registrars to produce a file format for capturing of shareholders information.
- To prepare standardised e-dividend payment data form for shareholders to complete.
- To verify and authenticate files received from Registrars for confirmation of data integrity and source.
- To submit file same day to all banks in
- Nigeria for the accounts of named e-dividend beneficiaries to be credited.
- To return unapplied funds to Registrars through a reverse channel.
- To send compliance report to SEC to confirm the transfer of funds.
- To return unapplied funds.
Authenticate forms for e-dividend mandate, sign and stamp such forms at minimal or no charges.
Credit beneficiaries accounts within 24 hours of receipt of e-dividend through NIBSS.
- Modify share transfer form to include bank account and other details for payment of e-dividend.
- Create comprehensive and sustained public awareness of the new process.
The implications for stakeholders are as follows:
- All shareholders are expected to open bank accounts or update their bank account information and forward same to their Registrars.
- Stockbrokers are to update their Initial Public Offer (IPO) form to include shareholders bank account information for the benefit of new investors.In line with the new policy, all companies must meet their obligations and dividend payments. The NIBSS are expected to effect e-dividend credit into shareholders accounts within 24 hours of dividend declaration by companies.