E-Dividend: Over 2.8 million investors enrolled on e-DMMS in Q3’19

The Securities and Exchange Commission (SEC) has disclosed that over 2.820 million shareholders enrolled on the E-Dividend Mandate Management System (e-DMMS) process at the end of the third quarter of 2019.

Acting Director-General, SEC, Mary Uduk, in an interview, explained that more investors had embraced the e-DMMS initiative as they had finally accepted it as the future.

The SEC boss also added that the commission had ordered registrars to stop the practice of requesting for confirmation of bank signature as part of the e-DMMS process.

Details of e-DMMS: Launched in July 2015, the initiative, which was birthed by SEC in collaboration with the Central Bank of Nigeria, is to eradicate or reduce to the barest minimum the incidence of unclaimed dividend.

To boost the e-dividend mandate and Direct Cash Settlement initiatives, the commission engaged the Nigeria Inter-Bank Settlement System (NIBSS) on behalf of the capital market community to facilitate identity validation and account validation in an effort to enhance market processes.

To create more awareness, Uduk said all capital market operators were required to display awareness campaign banners of the e-DMMS at their offices and venues of annual general meetings.

She requested that all capital market operators should work with the commission to share awareness information on their social media platforms.

According to Punch, the commission was reviewing the request from the Association of Stockbroking Houses of Nigeria for extension of time for compliance with the transfer of complete investor data among operators such as brokers, registrars and the Central Securities Clearing System.

She said, “Upon completion, the position of the commission will be communicated to the relevant parties. We will also engage the National Pension Commission on modalities, which would permit Pension Fund Administrators to participate in securities lending and see it as a profitable initiative.” 

Acting Executive Commissioner (Operations), Isyaku Bala Tilde, urged shareholders to complete the form which “would be taken to the bank to verify that you are an account holder; you don’t need another banker’s confirmation.”

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