SEC cancels bank signature verification for e-dividend exercise

The Securities and Exchange Commission (SEC) has directed that registrars discontinue the practice of requesting for confirmation of bank signature during the e-dividend mandate management System (e-DMMS) process.

She stated that the presentation by the e-dividend committee showed that the number of shareholders enrolled on the e-DMMS platform had increased to 2,820,065 at the end of the third quarter of 2019.

Uduk said all capital market operators were required to display awareness campaign banners of the e-DMMS at their offices and venues of annual general meetings.

She requested that all capital market operators should work with the commission to share awareness information on their social media platforms.

Uduk also noted that the commission was reviewing the request from the Association of Stockbroking Houses of Nigeria for extension of time for compliance with the transfer of complete investor data among operators such as brokers, registrars and the Central Securities Clearing System.

According to her, “Upon completion, the position of the commission will be communicated to the relevant parties. The commission will also engage the National Pension Commission on modalities, which would permit Pension Fund Administrators (PFAs) to participate in securities lending and see it as a profitable initiative.”

Uduk added that the non-interest finance committee presented the importance of granting the PFAs the permission to invest a given percentage of a willing contributor’s Retirement Savings Accounts in non-interest capital market products.