The Securities and Exchange Commission (SEC) has commenced the implementation of e-Dividend Mandate Management System (e-DMMS) according to a statement from the apex regulator in the capital market, investors can now starts the enrolment for e-Dividend payments at Bank and Registrar branches nationwide through the online platform launched on 29th July 2015.
This follows the release of a circular on the implementation of e-DMMS portal by the Central Bank of Nigeria (CBN) to all Deposit Money Banks dated Monday 14th September, 2015.
The e-Dividend scheme has been a priority initiative for the entire capital market in a bid to curb the growth of unclaimed dividends and improve the overall efficiency of Nigeria equities markets.
The e-DMMS portal utilizes the Nigerian Inter Bank Settlements System (NIBSS) robust Document Management System to which completed e-Dividend Mandate Forms filled by the investor could be uploaded.
SEC noted that the e-Dividend Form can be obtained and properly filled at bank branches or in the office of a registrar. While explaining the process, SEC said where an investor opts to fill the Form at a registrar office, the Registrar shall verify details such as the investor name, account number and Clearing House Number (CHN).
The completed form shall then be uploaded to the e-DMMS portal for immediate access by the investor chosen Bank. The Bank is required to validate the investor Bank Verification Number (BVN) and other account details.
Should an investor choose to complete the e-Dividend Mandate Form at his bank branch, the Bank shall validate his/her BVN and account details before uploading a scanned copy of the Form to the e-DMMS portal.
This uploaded Form would immediately be accessible to the investor chosen Registrar who is required to validate the investor name, shareholder account number and Clearing House Number (CHN).
However, SEC expressed appreciation to the CBN and NIBSS for showing strong support for this scheme. Deposit Money Banks have equally shown high commitment to implement the scheme as well.
Registrars have been directed to ensure that all their offices are properly equipped to enroll shareholders who would be approaching them for the exercise. All shareholders who are yet to be fully enrolled for e-Dividend payment are enjoined to take immediate steps to fill the Mandate Form at their chosen Bank or Registrar branch.
Recall that the Commission achieved a major feat with the launching of the e-dividend payment platform to address the rising unclaimed dividend figures in the Nigerian capital market last July.
The director-general Mr Mounir Gwarzo said that the commission would embark on massive public enlightenment on how investors would utilise the portal saying that the commission would also conduct intensive training for bankers and registrars on the usage of the new portal.
Stressing that the era of stale dividend and huge unclaimed dividend in the market will be a thing of the past with the launch of e-dividend payment platform, and we are determined to see the full implementation of the e-dividend payment system.
The e-dividend payment platform would address the lingering unclaimed dividend issue as the market had been awaiting the dividend payment platform in the past 20 years.