By Cynthia Ezekwe
The Securities and Exchange Commission (SEC) is set to revamp the e-Dividend Management Mandate System (e-DMMS) platform, as an avenue to curtail unclaimed dividends and increase the number of investors that have mandated their account in the capital market.
Lamido Yuguda, Director General of SEC disclosed that measures have been adopted by the stakeholders to increase the number of investors that mandated their account, to enable them receive the benefits of their investments in the capital market.
According to him, some of the measures adopted includes submission of a centralised e-Dividend mandate form, an Application Programming Interface (API) for banks and registrars, a redesigned web interface, and programmes on investor education
Yuguda expressed utmost concern, as a good number of investors are yet to mandate their account, at a period where dividends are electronically distributed.
“Dividends are now distributed electronically, so dividends go directly into the investor’s account, and if everybody mandates their accounts, there would be few unclaimed dividends in the system,’’ he said.
The SEC DG also implored investors to do the needful, which is mandating their accounts, through registrars by obtaining forms from the bank, as the floor is still open to do so.
“This process is still open and can be done with the registrars, forms can be obtained from the banks, too, and it’s a very simple process. We also have on our website a tool that assists investors in determining any unclaimed dividends that they have. And I would encourage everyone to take advantage of these tools or to speak to the complaints section of the SEC directly, and we would guide that person appropriately,” he said.
Yuguda also expressed gratitude to the House of Representatives Committee on capital markets and institutions on unclaimed dividends over their efforts to investigate the rising value of unclaimed dividends and unremitted withholding tax on dividends; while assuring them of their relentless efforts to provide the necessary support to the committee, to enable them carry out their duties and hit their targets.
