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SEC extends deadline for free e-dividend registration to February 28

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The Securities and Exchange Commission, SEC, has extended the deadline for the free electronic dividend (e-dividend) registration to February 28, 2018. The commission said in a statement to yesterday that the further extension was part of its developmental and an effort to encourage more shareholders to key into the initiative.

According to SEC, the review of the progress in the e-dividend registration exercise, after the December 31, 2017 deadline, showed that there was still a great influx of shareholders desirous of mandating their bank accounts for payment of dividends electronically. “In light of the foregoing, the SEC, as part of its developmental role, has extended the period for the free e-dividend registration exercise till February 28, 2018, to encourage more shareholders mandate their bank accounts. “Accordingly, shareholders that are yet to register should continue to approach their banks or registrars to mandate their accounts for the collection of their dividends electronically, including unclaimed dividends, not exceeding 12 years of issue” the SEC stated.

Recall that the SEC had announced that the e-dividend registration exercise would continue seamlessly in spite of the expiration of the initial December 31st 2017 deadline. Acting Director General of SEC, Dr. Abdul Zubair, who made the announcement at a press briefing recently, enjoined all the investors who were yet to register to key in. He said “Such investors should continue to approach their banks or registrars, as usual to seamlessly mandate their bank accounts for the collection of their dividends electronically, including unclaimed dividends, not exceeding 12 years of issue. Zubair also announced an extension of the forbearance window for multiple accounts consolidation to March 31, 2018.

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He said:  “With a view to encouraging many more investors to consolidate their multiple subscriptions into one account, the SEC wishes to announce an extension of the forbearance for multiple accounts till 31st March, 2018. “Accordingly, investors that bought shares of the same company during public offers, using different names, are allowed till 31st March, 2018 to continue to approach their stockbrokers or registrars to regularize their shareholdings, in line with SEC rules on customer identification. Thereafter, all shares not regularized shall be transferred, on trust, to the Capital Market Development Fund”.

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