Breaking News
Translate

COVID-19: SEC bans direct payment of investors’ dividend to stockbrokers

Kindly Share This Story:

By Peter Egwuatu

SEC, Securities and Exchange Commission
SEC

As part of measures to protect investors in the nation’s capital market, post coranavirus, COVID-19 pandemic, the Securities and Exchange Commission, SEC has banned stockbrokers from collecting dividend payment due to investors in order to improve market confidence that has gradually been coming up five days after the easing of lockdown in the country.

“The Acting Director General, SEC, Mary Uduk who confirmed this stated that investor protection as one of the major mandates of the SEC which is viewed seriously knowing that investors will not come to the market in the absence of adequate protections for them.

 

READ ALSO:COVID-19: CSCS activates business continuity plan, goes fully digital

“She said: “One of the ways we protect investors is the e-dividend system we have put in to ensure investors get their dividends directly. Dividends do not have to be routed through stockbrokers any longer. We also have the Direct Cash Settlement, Complaints Management Framework, Transmission of shares among others initiatives to protect investors.”

“Continuing she said: ” We also have continued to educate investors on how to approach the market, we have continued to ensure improvement of market conduct, and we are working to deepen the market to ensure there is improved confidence. We are optimistic that confidence in the market will continue to improve”.

The SEC Boss added that another form of investor protection the Commission continues to offer is to ensure that market conduct is at its best, as the SEC ensures that registered capital market operators treat investors fairly and obey the rules of the market.

Kindly Share This Story:
All rights reserved. This material and any other digital content on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from VANGUARD NEWS.

Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.
Do NOT follow this link or you will be banned from the site!