SEC NIGERIA PROPOSES NEW RULE ON UNCLAIMED DIVIDENDS

At last, the Securities and Exchange Commission (SEC) has proposed a way out of the capital market's always mounting unclaimed dividends.

According to the proposal dated August 23 and posted on its website, SEC is proposing that any unclaimed dividend that remains unclaimed for 12 years be transferred to the Nigerian Capital Market Development Fund.

Specifically, the proposed rule directs all companies and registrars "in custody of unpaid dividend which remain unclaimed by shareholders 12 years after date of declaration or subsequently attain the 12 years threshold shall upon coming into effect of this rule, transfer such monies unto the Nigerian Capital Market Development Fund".

It is also proposed that " all companies and registrars shall, not less than 30 days after the end of every calendar year, forward to the Commission a report of unclaimed dividends in their custody" and specify degree of compliance with the proposed rule.

Finally, the new rule in the works, also directs all companies to disclose details of compliance in their annual reports.

All stakeholders are to react to the proposed rule within two weeks from August 23 through rulescommittee@sec.gov.ng or through the Director General.

Meanwhile, all capital market operators have been given up to October 31 this year to register formally with self regulatory organisations or capital market trade group or associations.

This is to effectively bring in such groups and associations into conflict resolutions especially handling of investors complaints within the industry.

According to SEC Nigeria, the non effective participation of these groups and association in conflict resolution despite February 2015 decision to bring them in had been handicapped by non registration by some operators.

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