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SEC continues online dividend registration, may ends process by March 31

 By NewsDesk, 

Shareholders of various corporate organizations may still for more week have privileges to registered on  Securities and Exchange Commission (SEC) free e-dividend registration which was earlier declared would be ending, after the commission unofficially yet announced extended deadline to March 31.

The Guild had gathered through a senior management staff of the commission, who pleaded not to be mentioned, that the deadline was extended in principle for the third time for operators to clear their e-dividend backlogs.

However, as reported, e-dividend refers to online payment of dividends to investors rather than through post and that advantage of e-dividend was that it allows accrued dividends to be credited to an investor’s bank account directly.

The source said that the aim was to stem rising problem of unclaimed dividends in the capital market and main reason for the extension was to clear the backlogs and to work out details of how the parties involved in the exercise would get their share.

He disclosed that parties involved in exercise were registrars andNigeria Interbank Settlement System, and that appointed banks were currently working out sharing formula for registration fee.

He hinted that the commission would not come publicly to announce another extension, noting that no investor would be charged for delay in the registration until April 1.

The source explained that low investors’ response to the exercise contributed to the commission’s decision to give room for enrollment of more investors.

SEC in June, 2017 extended the underwriting cost of investors’ e-dividend registration to Dec. 31, 2017 against the earlier deadline of June 30, 2017.

It also on Jan. 18 extended the deadline to Feb. 28, 2018, to encourage more shareholders’ participation in the scheme.

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