The Director General, Securities and Exchange Commission on The advantages of the E Dividend Mandate Management System (E-DMMS)
Director General of the Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo has described the e-Dividend platform as a game changer in the Nigerian Capital Market which will ensure that infractions are reduced to the barest minimum.
At a Town Hall meeting to sensitize the investing public on the E-DMMS held at the International Conference Centre, Abuja, on Thursday, January 14, 2016, the Director General expressed satisfaction with the level of success recorded so far with the enlightenment programme and urged investors to take advantage of the service by visiting their registrars or banks to register on the E-Dividend platform. He added that registration was currently on going nationwide.
Addressing the public, the Director General said this was a step in the right direction, and assured the investing public that registration on the platform shall be free for the first ninety (90) days commencing November 23, 2015. In his speech, Mr. Gwarzo said “We have agreed with all stakeholders that for the first 90 days, the registration on the platform would be free, subsequent to which registration would attract a fee of N100”.
The Director General also submitted that the implementation of the E-Dividend platform would fetch certain advantages to the capital market which include:
Mr. Gwarzo hinted that the E-Dividend programme was in phases, adding, that upon conclusion of the registration process, the next phase of the project would be to look into claims made by investors who have dividends less than 12 years old. He stressed that in implementing this phase, the registrars would be expected to verify the owners of all unclaimed dividend in that category, following which they would be mandated to pay investors in that regard.
While applauding the efforts of all stakeholders towards the achievements of this landslide, Mr. Gwarzo stated that the era of denying investors the proceeds of their shares was over. The e-dividend platform with the use of Bank Verification Number (BVN) would contribute immensely towards this. He added that another advantage of the e-dividend platform is that it will provide a very robust Know Your Customer (KYC) regime for the operators. He cited the lack of KYC as a major reason for infractions in the market.