Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) yesterday said the June 30, 2017 deadline for cessation of dividend warrants in Nigeria remains sacrosanct, urging shareholders to take advantage of the ongoing free registration for e-dividend.
According to The Nation, the Commission also said the Nigerian capital market will commence the full and compulsory implementation of the Direct Cash Settlement (DCS) on September 1, 2017.
Under the DCS,
- The stock market will transit from the current stockbroker-mediated payment system under which proceeds of shares sales are remitted to the stockbroker for onward remittance to the investor to a new system under which payment will be made directly to the investor’s account.
- All quoted companies to initiate programmes to educate their shareholders on the benefits of the e-dividend, adding that the issue of e-dividend should be one of the topics of discussions at annual general meetings.
- The Commission and other capital market stakeholders have decided to grant a reprieve to shareholders that had used their names in several forms to make multiple subscriptions for shares to consolidate those shares under a single personal identity.
- Investors who joggled their names for the purpose of multiple subscriptions would be given a forbearance period of six months within which they can lay claims to both their shares and accruing dividends subject to establishment of their identity and a verification process by the SEC.
- Shareholders that could not present valid identity and verifiable evidence and those persons that use false, non-existent names to buy shares would forfeit such shares and accruing dividends, which shall all be transferred to the proposed Nigerian Capital Market Development Fund (NCDMF).
- Any person that henceforth engages in multiple subscription or use of false identity shall be prosecuted.
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