Business
e- Dividend Policy: ICMR Explains Shareholders’ Frustraion
Chief Executive of Institute Capital Market Registrars (ICMR), Dr. David Ogogo, says the insistence that shareholders must have current accounts is frustrating electronic dividend payment policy.
E-dividend payment policy, introduced by the Securities and Exchange Commission (SEC) in 2008, is the process of crediting shareholders accounts within 24 hours after payment of dividend by a company.
Ogogo said in Lagos on Tuesday that some investors were being discouraged from buying into the arrangement because of banks’ charges as most of them had savings accounts.
He said that the Central Bank of Nigeria (CBN) should mandate commercial banks to accept both savings and current accounts for payment under the system.
Ogogo also said that the policy was being hindered by pockets of resistance by some investors who were used to physical dividend warrants.
According to him, e-dividend is a convenient method that ensures that warrant is not lost in transit.
He said that the institute would continue with its enlightenment programme to ensure that more investors accepted the electronic payment platform to address the issue of unclaimed dividend.
President of Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, said that ignorance was the major reason why many shareholders refused to embrace the policy.
Okezie said that many shareholders were discouraged from subscribing to the e-dividend because most banks insist on current accounts.