The Securities and Exchange Commission (SEC) has extended the deadline for the issuance of dividend warrants to 31st December 2019.
According to the capital market regulator, the extension is to enable relevant stakeholders deliberate on and address all outstanding issues relating to the practice.
The Commission, in a circular hoisted on its website, stated that the decision was in furtherance of its overriding mandate to ensure that all categories of shareholders and investors are adequately protected.
It, however, stated that the e-dividend initiative remained critical to the complete elimination of the phenomenon of unclaimed dividend, advising all shareholders who are yet to do so, to get mandated on the e-DMMS platform before 31st December 2019.
The Commission stated further that it conducted a strategic assessment of the implementation of the e-dividend initiative across the country and reviewed feedback/observations received from stakeholders and the general public recently.
It clarified further: “The assessment revealed that while remarkable progress has been recorded in concerted efforts through robust enlightenment campaigns to mobilize more shareholders to get mandated on the e-DMMS platform, there remain a few pertinent issues that need to be resolved as a precursor to the total discontinuance of the issuance of dividend warrants by Registrars.”
