SEC extends deadline of dividend paper warrant issuance

The Securities and Exchange Commission (SEC) has extended the deadline for the discontinuance of the issuance of dividend paper warrants to December 31.

Efe Ebelo, SEC’s head of media, made this known on Thursday in statement in Abuja.

A dividend paper warrant is a financial instrument in form of a cheque that is issued by a quoted company to its shareholders through which dividend is paid to them.

According to Ebelo, the extension of the warrant was disclosed in a circular by the commission in Abuja.

She said the extension was to enable relevant stakeholders deliberate on and address all outstanding issues.

“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 statement read.

“However, the e-dividend initiative remains critical to the complete elimination of the phenomenon of unclaimed dividend.

“And the management of the Commission encourages all shareholders who are yet to do so, to get mandated on the e-DMMS platform before December 31.”

According to Ebelo, the SEC recently conducted a strategic assessment of the implementation of the e-dividend initiative across the country.

She said the assessment reviewed feedbacks and observations from stakeholders and the public.

She said the assessment revealed remarkable progress was recorded through robust enlightenment campaigns to mobilise more shareholders to get mandated on the e-DMMS platform.

She however said there remained a few pertinent issues that needed to be resolved as a precursor to the total discontinuance of the issuance of dividend warrants by registrars.

The SEC had directed all registrars to stop the issuance of dividend paper warrants with effect from January 1, 2018.