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The Securities and Exchange Commission has directed registrars to stop the issuance of dividend paper warrants. A dividend paper warrant is a financial instrument in form of a cheque issued by a quoted company to its shareholders through which dividend is paid to them. Acting Director-General, SEC, Abdul Zubair said the stoppage of the issuance of dividend paper warrants will be effective from January 1 this year.

Zubair added that all paper warrants issued up till December 31, 2017 are valid and should be honoured by banks.

 

He also said the commission, in a bid to encourage many investors to consolidate their multiple subscriptions into one account, has also extended the forbearance for multiple accounts till March this year.

 

On the issue of electronic dividend, the acting SEC DG said the free registration exercise for investors ended on December 31, 2017 in line with the stipulated deadline.

 

He noted that during the period of the free registration, the commission spent the sum of N315m to underwrite the mandate of 2.1 million shareholders.



According to him, henceforth, all investors who have yet to enrol under the e-dividend platform will now do so after the payment of a marginal cost of N150. “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, as the N150 will not be demanded from them at the point of registration,” he added.

 

On the forensic audit of Oando Plc, Zubair said the probe would go on as agreed, adding that there was no going back on it by the commission.

 

“We gave a directive that the audit should go on and we still stand by that and no going back on the forensic audit,” he added.

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