The Securities and Exchange Commission (SEC) has extended the deadline for stoppage of issuance of physical dividend warrants in the nation’s capital market to December 31, 2017.
Naif Abdussalam, SEC Head, Corporate Communications, who disclosed this in Lagos yesterday, said the deadline was extended to give room for investors to key into the e-dividend payment platform.
He said the extension became necessary to perfect the commission’s rules on issuance of dividend warrants that was exposed to the public a week ago.
Abdussalam stated that SEC’s issuance of dividend warrants would be a thing of the past by December 31, 2017, with the amendment of the rules and keying into the e-dividend payment platform by more investors.
Abdussalam said the deadline was also extended to give room for enrolment of more investors in the e-dividend payment platform.
“E-dividend simply refers to an online system of paying dividends to investors when companies declare dividends, which are the profits meant for investors. Rather than send it by post, they will just wire it to the investor’s bank account.’’