E-Dividend: SEC Reports 2.2 Million Mandated Accounts

By Kingsley Ogunwa InvestAdvocate

Lagos (INVESTADVOCATE) – Nigeria’s Securities and Exchange Commission (SEC) on Wednesday said 2.2 million Nigerian investors have mandated their accounts for the e-dividend payment.

Mounir Gwarzo, the director general (DG), of THE Commission revealed this to financial market journalists at a press briefing after the end of the first Capital Market Committee (CMC) meeting for the 2017 held in Lagos Nigeria.

Gwarzo said this will reduce the growth of unclaimed dividend in the Nigerian Capital Market (NCM).

“Reducing the growth of unclaimed dividend between December 2016 and now, mandated accounts have hit 2.2 million,” he said.

The SEC Nigeria’s DG disclosed that 100 percent of the shares in the Nation’s Capital market have been dematerialised, through the efforts of the Central Securities Clearance System (CSCS) and the Nigerian Inter-Bank Settlement Systems (NIBSS).

“By June 30, 2017 there will be no more issuance of dividend warrants; SEC is developing a portal for investors, to enable mandates for accounts,” Gwaorzor said.

The DG of SEC Nigeria disclosed that the Commission is set to launch a market development fund this year, to lead efforts in galvanizing capital market activities in the country.

According to him, the fund is not a SEC fund, will be rolled out in the second Capital Market Committee for the year. “The launch will be at the next CMC and its board will be inaugurated,” he added.

He revealed that SEC is developing a portal for investors, to enable mandates for accounts.

For Direct Cash settlements (DCS), the DG said the CMC had done a robust work on it and it will be mandatory for all investors, from September 1st, 2017.