More than one year after ending the issuance of dividend warrants, the Securities and Exchange Commission, SEC, yesterday, announced reopening of the exercise to allow it address all outstanding issues. The Commission has therefore set a fresh deadline for discontinuation of issuance of physical dividend warrants at December 31, 2019.
SEC had in December 31, 2017 brought the exercise to a close, saying that 2017 marked the end of conventional issue of physical dividend warrants to shareholders of public companies in the Nigerian capital market. Nigeria’s crude oil production falls to 1.999m bpd However, in a circular titled, “Re: Extension of Deadline on Issuance of Dividend Warrants and Free E-Dividend Registration Exercise”, the Commission said that the decision to reopen the exercise and close in December 2019, followed feedback/observation from stakeholders across the market on progress in e-dividend registration and the need to resolve some outstanding issues before final discontinuation of the exercise.
It further stated that the decision is in furtherance of its overriding mandate to ensure that all categories of shareholders and investors are adequately protected. The circular reads: “The Commission recently conducted a strategic assessment of the implementation of the e-dividend initiative across the country and reviewed feedback/observations received from stakeholders and the general public.
The assessment revealed that while remarkable progress has been recorded in concerted efforts through robust enlightenment campaigns to mobilize more shareholders to get mandated on the e-DMMS platform, there remain a few pertinent issue that need to be resolved as a precursor to the total discontinuance of the issuance of dividend warrants by registrars. “Consequent upon the foregoing, the management of the Commission has extended the deadline for the discontinuance of the issuance of dividend warrants to 31st December 2019, to enable relevant stakeholders deliberate on and address all outstanding issues.” Vanguard
