SEC to investors: Regularise multiple shareholding accounts before Dec. 31

The Securities and Exchange Commission (SEC) has urged investors with multiple shareholding accounts to regularise such before December 31, 2019.

Addressing the press at the first quarter Post Capital Market Committee (CMC) media briefing in Lagos, Mary Uduk, the SEC acting DG, said the progress made so far on account regularisation has been in collaboration with the CBN.

“The market-wide committee on identity management and account validation for transactions in the capital market is enjoined to fast track its activities,” she said.

“In furtherance of this initiative, the Commission is to engage the CBN to facilitate the validation process through the Nigeria Inter-Bank Settlement System (NIBSS).

“The focus is to ensure that every investor duly regularises the share account because while E-dividend system is growing and reduces the rate of unclaimed dividend, the issue of multiple accounts is a challenge.”

Commenting further on the issue, Isyaku Tilde, SEC’s acting executive commissioner, operations, said the regularisation of multiple accounts will enable payments of accrued dividends.

He explained that all accrued unclaimed dividends get automatic payments once regularised.

“Presently, if unclaimed dividend stays with the registrar for 15 months and above, it will be returned to the company.”

Uduk also said public companies will be directed to enlighten shareholders on the benefits of distributing annual reports electronically.