As part of its measures to reduce the growth of unclaimed dividend in the capital market, the Securities and Exchange Commission (SEC) has opened a data base of non-mandated accounts in the market. Th e data base will help investors to check their status with regards to registering on the e-dividend portal.
Th e e-dividend registration is one of the strategies adopted by SEC to bring down the increase in unclaimed dividend and provide opportunity for proceeds from sale of ones shares in the secondary market as well as dividend declared by investors respective companies to be credited directly into their mandated bank accounts.
In its notice released last week, SEC urged investors to make use of the opportunity available to participate in the on-going free e-dividend registration, insisting that its June 30th deadline for free registration still stands According to the statement “all investors are required to register for the payment of their dividends electronically (e-Dividend). Th e Commission further emphasized that the deadline will mark the end of issuance of physical dividend warrant, arguing that the stoppage would mitigate the risks associated with physical dividend warrants and also improve investors’ experience
