Capital Market Committee renews move to check unclaimed dividends

Rising from its second quarter (Q2) meeting yesterday, the Capital Market Committee (CMC) noted its renewed efforts at resolving issues regarding unclaimed dividends in the country.

The CMC comprises all market stakeholders in the capital market –Securities and Exchange Commission, Nigerian Stock Exchange, NASD OTC, FMDQ OTC, and capital market trade groups.

Arunma Oteh, director general, Securities and Exchange Commission (SEC) said the CMC is also fine-tuning ways to boost securities lending as well as resolve other issues holding the country’s capital market from realising its full potential.

Oteh, who noted that the CMC welcomed the agenda of Godwin Emefiele, the new Central Bank Governor, said that the support of the Central Bank of Nigeria was vital in eradicating unclaimed dividends; as is the conclusion of the share dematerialisation process.

One of them, she noted was for the CBN to get all banks to allow retail investors to have dividends warrants paid into their savings accounts as well as their current accounts.

She stated, “We know some banks already do this. But we hope that the central bank would get to a point where it can direct all banks to allow this to happen. It is very critical even as we tackle the unclaimed dividend issue.”

According to the SEC DG, “the dematerialisation of share certificate would also go a long way in tackling unclaimed dividends. The dematerialisation of share certificates will soon be executed as the sub-committee set up for the project has come up with recommendations on how to go about.”

Dematerialisation is the process of converting paper certificates into electronic format, after which official records of shareholders of all listed companies will be held and maintained by the CSCS.

Oteh added, “There would be data migration issues but we would address that. The process will also cover unlisted companies that trade on the OTC market as well.”