SEC Sets up Panel on N80b Unclaimed Dividend

January 23, 2017
sec capital market

SEC Sets up Panel on N80b Unclaimed Dividend

By Modupe Gbadeyanka

A committee has been constituted by the Securities and Exchange Commission (SEC) to fix the deadline for account consolidation by investors who have multiple accounts which were part of the reasons why unclaimed dividend had risen to over N80 billion, Vanguard reports.

It was gathered that the committee is also expected to address all other issues of multiple accounts by investors.

Members of the committee were reportedly selected from the Nigerian Stock Exchange (NSE), Central Securities Clearing System (CSCS Plc) and stock broking firms.

Quoting a source, Vanguard said the committee is “working out the modalities; how a period of grace will be given to all investors who fall into this category so that they can amalgamate their accounts to sanitise the system.”

“The committee will come up with the relevant information that will be presented to SEC whether sanctions be made against such action or for the period of grace people will be allowed to amalgamate such account.

“After that period of grace there will be penalty. We will be having meeting by next week (this week) and the committee will come out with a common position that will be made known to the investors,” the source was quoted as saying.

Account consolidation is a process where investors in the capital market who have multiple accounts in the system are made to merge them into a single account.

Confirming this development, the General Manager, IT & Operations of the CSCS Plc, Mr Joseph Mekiliuwa, said “The SEC has set up a committee to look into the issues of multiple accounts and they are expected to recommend measures toward tackling the issues.”

Commenting on accounts consolidation, he said “In order not to clog the system, we encourage shareholders to consolidate their accounts; it is better and cheaper to maintain fewer accounts for ease of tracking investments.”

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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