**Stops Issuance of Dividend Warrants
By Modupe Gbadeyanka
The deadline earlier given by the Securities and Exchange Commission (SEC) to shareholders, who bought shares of the same company during the public offer using different names, to consolidate their multiple subscriptions into one account, has been extended.
While addressing newsmen on Tuesday on update of ongoing capital market initiatives, Acting Director General of SEC, Mr Abdul Zubair, said the deadline has now been shifted to March 31, 2018.
According to him, at the expiration of the new deadline, all shares not regularised would be transferred to the Capital Market Development Fund (CMDF).
He said affected shareholders can approach their stockbrokers or registrars to regularise their shareholdings in line with SEC Rules on customer identification.
“Investors who bought shares of the same company during public offers, using different names are allowed till March 31, 2018 to continue to approach their stockbrokers or registrars to regularise their shareholdings in line with SEC on customer identification.
“Thereafter, all shares not regularised shall be transferred, on trust, to the Capital Market Development Fund,” the SEC boss told journalists today.
On the electronic dividend (e-dividend) registration, which ended on December 31, 2017, Mr Zubair said it would not be extended.
As a result, the SEC boss has directed all registrars to stop the issuance of dividend paper warrants from Monday, January 1, 2018.
Henceforth, investors in the Nigerian capital market, who wish to register for the e-dividend exercise, will have to part with N150.
“In line with the approved rules of the Commission, all registrars have been directed to stop the issuance of dividend paper warrants with effect from January 1, 2018,” he said.
However, he disclosed that “all paper dividend warrants issued up till December 31, 2017 are valid and should be honoured.”
“Banks and registrars are accordingly implored to please note and adhere,” Mr Zubair said.
Adedapo Adesanya