BY OLUSHOLA BELLO, Lagos
The Securities and Exchange Commission (SEC) has urged investors in the capital market to register for e-dividend so that they can receive the benefits of their investments in the capital market.
This was stated by executive commissioner operations of the SEC, Mr Dayo Obisan, during an interview in Abuja at the weekend. e-dividend is the process of paying dividends due to shareholders through a direct credit into their chosen bank account electronically rather than the issuance of dividend warrant through the postal system.
Obisan said the registration was necessary to reduce the unclaimed dividends profile as well as increase liquidity in the capital market and the economy.
He disclosed that the e-dividend mandate forms are available on the websites of the SEC, registrars and even in some banking halls and therefore enjoined investors to download the forms, fill them out and submit to be mandated for e-dividend.
The SEC recently reminded capital market operators of the commission’s directives on update of investors’ ‘Know Your Customer’ information which it said is still in effect, describing the exercise as critical to deepening the participation of retail investors and therefore directed all CMOs to accord it the highest level of priority.
According to Obisan, it is quite important to let the public know that all these details the commission is requesting them to complete is for their own benefit.
“In a couple of weeks, we will start seeing some vivid steps taken towards that direction because these are benefits directly attributed to people that have carved out of their income and decided to invest in the capital market. They must directly get the benefit of that investment. Every person’s activity must be seen to complement the effort of the regulator to ensure that they reap the fruit of their own labour,” he stressed.