NAN-HE-6
E-dividend
By Chinyere Joel-Nwokeoma
Lagos, March 1, 2018 (NAN) Some shareholder activists on Thursday attributed investors’ low response to the Securities and Exchange Commission (SEC’s) free e-dividend registration to poor enlightenment campaign.
They told the News Agency of Nigeria (NAN) in interviews in Lagos that SEC would need to reach out to investors across the country to achieve the desired result.
NAN reports that e-dividend refers to an online system of paying dividends by companies instead of sending by post.
E-dividend registration enables investors to collect subsequent dividends electronically and allows all accrued dividends to be credited to their bank accounts.
This will reduce incidence of unclaimed dividends in the capital market.
Mr Boniface Okezie, President, Progressive Shareholders Association of Nigeria, said that SEC would need to intensify awareness campaign to sensitise investors to the need to embrace the policy.
Okezie described e-dividend payment system as a laudable initiative aimed at tackling unclaimed dividends, noting that many investors had yet to key into it due to lack of knowledge on how to go about it.
“More campaigns need to be carried out by SEC to sensitise investors to the need to embrace e-dividend payment system,” Okezie said.
According to him, the exercise should be a continuous thing in order to get more investors.
Mr Bayo Adeleke, the immediate past Secretary of the Independent Shareholders Association of Nigeria, told NAN that SEC should reach out to shareholders nationwide.
Adeleke said that expanded public enlightenment would make the e-dividend policy a success, adding that concentration in Lagos State alone would not achieve the aim.
“The world is technology-driven; we have to move with the times,” he said.
NAN reports that SEC’s second free e-dividend registration deadline ended on Feb. 28.
The commission has yet to announce if the free enrolment would be extended again.
However, a source close to SEC told NAN that the underwriting would be extended due to poor response by investors.
NAN reports that SEC, in June 2017, extended the underwriting cost of investors’ e-dividend registration to Dec. 31, 2017 against the earlier underwriting deadline of June 30, 2017.
On Jan. 18, the commission extended the period for the free e-dividend registration to Feb. 28 to encourage more shareholders’ participation in the initiative. (NAN)
JNC /CHOM/IGO
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Edited by Chioma Ugboma/Ijeoma Popoola