SEC postpones e-dividend migration deadline

The Securities and Exchange Commission (SEC) has postponed the June 3, 2013 deadline given to shareholders to migrate to e-dividend payment till further notice.

According to a statement issued by the SEC management, the decision was taken as a result of feedback received from various stakeholders in the capital market on the issue.

According to the statement, 'consequent upon feedback received from various stakeholders in the capital market, the deadline of Monday June 3, 2013 for transitioning to e-dividend payment is postponed till further notice.

'This will enable the Commission to further enlighten retail investors and other investing publics on the merits of e-dividend payment. The Commission is also engaging the monetary authorities on modalities for e-dividend to be paid into both savings and current accounts.

'We hereby assure all investors that protecting their interest is the key focus of the Commission. In this respect, the Commission is seeking to ensure that investors no longer lose their dividends due to diversion and loss of dividend warrants.

'We also encourage listed companies and registrars to do all that is necessary to reduce the quantum of unclaimed dividends.'

SEC had recently issued a directive, mandating shareholders of public companies to forward their bank account details to their respective registrars or stockbrokers on or before June 3, 2013, as failure to comply may amount to automatic forfeiture of future dividend has continued to generate mixed feeling among capital market stakeholders.

Unclaimed dividends in the market are said to be over N52 billion and rising by the day.