The securities and Exchange Commission (SEC) has said that the electronic dividend warrants will start from January 1, 2020 as it phase out the current practice on 31st December 2019.
The decision which aims at nipping the problem of unclaimed dividends in the capital market is to allow relevant stakeholders deliberate on and address all outstanding issues. According to a circular on the Commission’s website on Thursday, the decision of the Commission is in furtherance of its overriding mandate to ensure that all categories of shareholders and investors are adequately protected.
The circular said “Consequent upon the foregoing, the Management of the Commission has extended the deadline for the discontinuance of the issuance of dividend warrants to 31st December 2019, to enable relevant stakeholders deliberate on and address all outstanding issues.” However the SEC stated that the e-dividend initiative remains critical to the complete elimination of the phenomenon of unclaimed dividend and Management of the Commission encourages all shareholders who are yet to do so, to get mandated on the e-DMMS platform before 31st December 2019.
The Commission said that the SEC recently conducted a strategic assessment of the implementation of the e-dividend initiative across the country and reviewed feedback/observations received from stakeholders and the general public.
“The assessment revealed that while remarkable progress has been recorded in concerted efforts through robust enlightenment campaigns to mobilize more shareholders to get mandated on the e-DMMS platform, there remain a few pertinent issue that needs to be resolved as a precursor to the total discontinuance of the issuance of dividend warrants by Registrars” the Circular added
No comments:
Post a Comment