The Securities and Exchange Commission (SEC) has disclosed that enrollment for e-Dividend payments can now be efficiently conducted at banks and registrar branches nationwide through the online platform launched on 29th July 2015.
This follows the release of a circular on the implementation of e-dividend Mandate Management System ( e-DMMS portal) by the Central Bank of Nigeria (CBN) to all Deposit Money Banks dated Monday 14th September, 2015.
The e-Dividend scheme has been a priority initiative for the entire capital market in a bid to curb the growth of unclaimed dividends and improve the overall efficiency of Nigeria’s equities markets.
The e-DMMS portal utilises NIBSS’ robust Document Management System to which completed e-Dividend Mandate Forms filled by the investor could be uploaded. The e-Dividend Form can be obtained and properly filled at bank branches or in the office of a registrar.
Where an investor opts to fill the Form at a registrar’s office, the registrar shall verify details such as the investor’s name, account number and Clearing House Number (CHN). The completed form shall then be uploaded to the e-DMMS portal for immediate access by the investor’s chosen bank. The bank is required to validate the investor’s Bank Verification Number (BVN) and other account details.
Should an investor choose to complete the e-Dividend Mandate Form at his bank branch, the bank shall validate his/her BVN and account details before uploading a scanned copy of the Form to the e-DMMS portal. This uploaded Form would immediately be accessible to the investor’s chosen registrar who is required to validate the investor’s name, shareholder account number and Clearing House Number (CHN).
The SEC commended the CBN and NIBSS for showing strong support for the scheme, adding that Deposit Money Banks have equally shown high commitment to implement the scheme as well.
The commission, therefore, directed all registrars to ensure that all their offices are properly equipped to enrol shareholders who would be approaching them for the exercise, while also enjoining shareholders who are yet to be fully enrolled for e-Dividend payment to take immediate steps to fill the Mandate Form at their chosen bank or registrar branch.
Recall that the commission achieved a major feat with the launching the e-dividend payment platform to address the rising unclaimed dividend figures in the Nigerian capital market in July.
Speaking at the unveiling of the platform in Lagos, Mr Mounir Gwarzo, SEC, Director-General, said that the platform was initiated in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS).
Gwarzo said that the e-dividend payment platform would address the lingering unclaimed dividend issue as the market had been awaiting the dividend payment platform in the past 20 years.
“The era of stale dividend and huge unclaimed dividend in the market will be a thing of the past with the launch of e-dividend payment platform, and we are determined to see the full implementation of the e-dividend payment system. Gwarzo said.