SEC moves to ease unclaimed dividend in capital market
As part of efforts to further reduce the volume of unclaimed dividends in the Nigerian capital market, the Securities and Exchange Commission, SEC, has asked beneficiaries of deceased investors to claim their dividends.
The Acting Director General of the Commission, Ms. Mary Uduk said the quantum of available dividend from this group of beneficiaries contributes immensely to the surge of unclaimed dividends in the capital market.
A statement from the SEC quoted Uduk to have made the call at the enlightenment programme for Lagos State Probate Registry held in Lagos.
The SEC Boss who was represented by Acting Executive Commissioner Operations of the SEC, Mr. Isyaku Tilde, said the purpose of the enlightenment programme is to give participants an understanding of the operations of the capital market, especially in the area concerning transmission of shares and administration of estate, areas in which the Probate Registry is a key stakeholder.
She said one category of investors whose investment yields have contributed to the growth of unclaimed dividends are deceased investors, whose beneficiaries as indicated in the will or letter of administration are yet to claim the investments and accrued dividends through the shares transmission process.
According to her, “The capital market is a market for raising medium to long term capital via a number of instruments. The most popular of the instruments are shared and bonds with resultant yields of dividends and interests respectively.
“However, the quantum of unclaimed dividends in the Nigerian capital market has been on the increase as investors fail to claim the dividends from their investment in shares.”