SEC Annuls Issuance Of Dividend Warrant

LAGOS: With effect from the 3rd of June, 2013 shareholders of quoted companies on the Nigerian Stock Exchange will no longer be issued dividend warrant.

Nigerian stock exchangeThe Securities and Exchange Commission (SEC) has therefore requested all investors of public companies to forward their bank account details to their respective registrars and stockbrokers on or before June 3 to facilitate the electronic payment of future dividends.

Any shareholder who fails to comply with this directive risks the chance of forfeiting future dividend except in the event that a shareholder specifically requests in writing for a continued issuance of dividend warrants.

The apex regulator has observed with dismay the unprecedented increase in the size of unclaimed dividends in the capital market and is confident that the introduction of e-dividend payment systems would reduce that to the barest minimum.

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