By PETER EGWUATU

Investors in the Nigerian capital market have been excluded from paying extra fee for biometric and signature verification in the process of keying into the automation of capital market activities. Mr. Niyi  Ajao, Executive Director, Technology and  Operations, Nigeria Inter –Bank Settlement System (NIBSS) disclosed to Vanguard that arrangements were reached by  Central Bank of Nigeria, CBN ,  Securities and Exchange Commission  SEC an NIBBS  to  ensure that investors do not incur extra charge  as the  market moves into full automation processes.

According to him “The issue of taking what does not belong to you has ended today with the launch of this e-dividend portal.  No investors would be charged for signature and mandate verification. Also dividend can be paid into savings and current account under financial integration scheme. For the investors in the Diaspora, an arrangement is being put in place where the registrars can provide their portal online for them to register and thereafter the Know Your Customers, KYC will be concluded by the banks.”

Addressing newsmen in Lagos during the launch of the e-portal dividend held after the second quarter Capital Market Committee, CMC meeting, Director General of the commission, Mr. Mounir  Gwarzo  said: “ The SEC is committed to zero tolerance of unclaimed dividend, hence the need to launch the e- dividend portal where investor can download the e-dividend mandate form and register through their respective registrars.

So, the issue of unclaimed dividend will now be a thing of the past as the commission in collaboration of NIBSS, CBN, Central Securities Clearing System, CSCS collaborated to launch the e-dividend portal that would enable investors get their dividend paid into their savings and current accounts respectively.”

Commenting on the rising unclaimed dividend which hovers around N70 and N80 billion, he said “The commission had tried in the past to solve the issue by recommending Unclaimed Dividend Trust Fund, but for some stakeholders who were not comfortable with the proposed Fund, which they feared could not be managed effectively kicked against it when the matter went to the House of Assembly.

“ However, Companies and Allied  Matters Act, CAMA has stated that unclaimed dividend becomes status barred after 12 years and such money should be returned to the companies that declared it. But, it should be noted that Investment and Securities Act , ISA has given the SEC the power  to make rules pertaining to market issues and where are there are conflicts with CAMA, the ISA supersedes.

So, the commission has stated in its rule that after 15 months that dividend is declared, any unclaimed dividend should be returned to the company that declares it rather than waiting for 12 years. The SEC had directed all registrars of public companies to return all unclaimed dividends, which have been in their custody for fifteen (15) months and above, to the paying companies. Registrars are required to file evidence of remittance with the commission.”