The Securities and Exchange Commission (SEC) on Thursday is blaming some Capital Market Operators (CMOs) rise in unclaimed dividends in the capital market.
It said CMOs are responsible for frustrating the e-dividend mandate process, henceforth the unclaimed dividends.
The News Agency of Nigeria, NAN reported that Nigeria’s unclaimed dividends in the capital market have reached N200 billion in 2021. The Director-General, SEC, Lamido Yuguda had confirmed this at the 2021 first post-Capital Market Committee (CMC) virtual news conference.
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According to NAN, Yuguda accused CMOs for were frustrating the e-dividend mandate process saying that it is backed by the commission’s observations.
The SEC has directives for all stakeholders regarding e-dividends, however, not everyone adheres to that.
Yuguda further employs “all stakeholders to comply with all directives of the Commission.” Defaulters he said, “would be sanctioned appropriately.”
More so, the e-Dividend Committee also has a directive from the capital market community to engage with the Committee of Heads of Banking Operations. This will help encourage better cooperation from banks while tackling the challenges of unclaimed dividends,” Yuguda noted.
The commission also has “Know Your Customer” directives which expect CMOs to perform an update of investors’.