The Securities and Exchange Commission (SEC) has that it will continue to underwrite the cost of E-Dividend enrolment till 30th June, 2017.
SEC in a statement yesterday expressed the hope that the move would further reduce the unclaimed dividends profile and curb its growth in the country.
The commission disclosed that over N30 billon have so far been paid to investors in the Nigerian capital market from the backlog of unclaimed dividends.
“With a view to ensuring all investors benefit from the e-dividend programme free of charge, the SEC had committed to pay the cost of enrolment throughout the year 2016, and had resulted in getting about 48 percent of investors to enroll for the e-dividend payments. Arising from this exercise, over N30 billion which was hitherto unclaimed have so far been credited to respective bank accounts of investors.
“Therefore, the advantage of the e-dividend is not only to enable investors collect subsequent dividends electronically but it allows all accrued dividends be credited to investors’ bank accounts.
“The commission has however observed with concern the challenges being experienced by investors in the course of the e-dividend registration and therefore commits to further defray the cost of registration till June 30th, 2017 to enable investors continue to enjoy the free registration” the SEC stated.
The SEC also reminded the investing public that at the expiration of the free registration period, dividend warrants will no longer be issued as it would be replaced with electronic dividend payments.