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Monday, December 24, 2018 07.00AM / SEC Nigeria
Nigerians
have once again been enjoined not to entertain any fears of prosecution but
take steps to regularise their multiple subscription accounts in order to
obtain the benefits of their investments in the capital market.
Acting
Director General of the Securities and Exchange Commission, SEC, Mary Uduk
stated this during an interview in Abuja weekend.
Uduk said such investors should not entertain any
fears of prosecution as the Commission is only interested in ensuring investors
have the benefits of their investments.
According to her “They are not going
to be prosecuted, we just want them to come forward and take back their shares
and register them properly with CSCS so that the trading float in the market
will increase
According
to her “The forbearance window for shareholders with multiple subscriptions has
been extended by another year from the December 31, 2018 deadline previously
communicated. Consequently, we enjoin those who have not come forward for the
regularization of shares purchased with multiple identities, to do so.
Uduk also enjoined investors to take advantage of the
on-going e-dividend registration in a bid to reduce the unclaimed
dividends profile as well as increase liquidity in the capital market and the
economy.
According to her, “The essence of
the E-Dividend Mandate Management System is to eradicate or reduce to the
barest minimum the incidence of unclaimed dividend. Unclaimed dividend is an
undesirable feature of the Nigerian capital market which denies
investors/shareholders the gains of participating in the capital market. It
denies the economy access to the huge amount of money which should have accrued
to shareholders and would have gone into circulation to oil the wheel of the
economy.
“It is
a consequence of the bottlenecks which are inherent in the erstwhile paper
dividend warrant regime such as postal system inefficiency, change in
investors’ addresses, poor fidelity and human fallibility in dividend payment
processes, amongst others.
She
stated that the E–Dividend regime bypasses these limitations by ensuring that
dividends which do not exceed 12 years of issue are credited directly to an
investors account after declaration by the paying company and within a
stipulated payment period through simple interbank transfer.
The
E-Dividend registration exercise started on November 23, 2016. Each successful
registration cost N150, however, between that time and March 31, 2018, the
Commission underwrote the registration cost for all investors that mandated. It
is my pleasure to let us know, that a total of 2.4million accounts had been
mandated.
“May I
therefore implore you all to key into the E-Dividend registration exercise by
visiting the nearest bank branch or registrar. In addition to migrating to the
E–Dividend regime yourselves, kindly tell everybody you know to do same in
their best interest.
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