SEC: e-dividend payment platform addresses unclaimed dividend issue

The implementation of e-dividend mandate management system (e-DMMS) portal would address the lingering unclaimed dividend issue as the market had been awaiting the dividend payment platform in the past 20 years, according to Mounir Gwarzo, Director-General, Securities and Exchange Commission (SEC).

“The era of stale dividend and huge unclaimed dividend in the market will be a thing of the past with the launch of e-dividend payment platform, and we are determined to see the full implementation of the e-dividend payment system,” Gwarzo said.

The director-general said that the commission would embark on massive public enlightenment on how investors would utilise the portal saying that the commission would also conduct intensive training for bankers and registrars on the usage of the new portal.

Speaking at the unveiling of the platform in Lagos, Gwarzo said that the platform was initiated in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-Bank Settlement System (NIBSS).

The Securities and Exchange Commission had notified the investing public that enrolment for the e-Dividend payments can now be efficiently conducted at bank and registrar branches nationwide through the online platform launched on July 29, 2015. This follows the release of a circular on the implementation of e-DMMS portal by the Central Bank of Nigeria (CBN) to all Deposit Money Banks dated Monday September 14, 2015.

The e-Dividend scheme has been a priority initiative for the entire capital market in a bid to curb the growth of unclaimed dividends and improve the overall efficiency of Nigeria’s equities markets.

The e-DMMS portal utilizes NIBSS’ robust Document Management System to which completed e-Dividend Mandate Forms filled by the investor could be uploaded. The e-Dividend Form can be obtained and properly filled at bank branches or in the office of a registrar.

Where an investor opts to fill this Form at a registrar’s office, the Registrar shall verify details such as the investor’s name, account number and Clearing House Number (CHN). The completed form shall then be uploaded to the e-DMMS portal for immediate access by the investor’s chosen Bank. The Bank is required to validate the investor’s Bank Verification Number (BVN) and other account details.

Should an investor choose to complete the e-Dividend Mandate Form at his bank branch, the Bank shall validate his/her BVN and account details before uploading a scanned copy of the Form to the e-DMMS portal. This uploaded Form would immediately be accessible to the investor’s chosen Registrar who is required to validate the investor’s name, shareholder account number and Clearing House Number (CHN).