Expert Tasks Shareholders On e-Dividend Payment

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The Chief Relationship Officer, Foresight Securities and Investment Ltd., Mr Fakrogha Charles has urged investors in the stock market to embrace the e-dividend payment platform to reduce the rate of unclaimed dividends.
Fakrogha, who gave the advice in an interview with The Tide source in Lagos, said that embracing the e-dividend platform would enable shareholders to get their dividend warrant electronically as at when due and with ease.
E-dividend payment platform is an electronic means of posting shareholders’ dividends directly into their bank accounts.
According to him, the e-dividend platform involves the Registrar collecting the account details of investors such that whenever a dividend warrant is declared, the payment is sent directly into the investors’ accounts.
Reports say that the e-dividend payment platform was introduced in 2008 with the aim of addressing unclaimed dividends in the capital market.
He said that stockbrokers and companies stand  a better chance to make investors embrace the innovation better by advising and educating them on its importance.
“We, at Foresight Securities and Investment Ltd., have taken it upon ourselves to ensure that all our investors, both old and new, now have the e-dividend form.
“It is now compulsory in the company that the documentation of all our old clients are revisited to ensure that the e-dividend form is opened for each of them through the registrar.
“If the system of e-dividend payment could be adopted by all investors and companies, the rate of unclaimed dividends will drastically be reduced,” the official said.
He therefore, urged the stock regulatory bodies to sensitise the investing public, through their numerous campaigns on the benefits of the innovation.
According to him, many investors have no knowledge about the e-dividend payment platform, thus calling for the sensitisation of the shareholders.
Meanwhile, an analysis of the market activities for last week revealed that a total of 892.725 million shares worth N13.075 billion in 15,607 deals were traded by investors during the period.
This was in contrast to the 1.533 billion shares valued at N23.026 billion that changed hands last week in 17,009 deals in the previous week.
According to the Financial Services Industry which led the activity chart during the period, with 757.992 million shares valued at N9.251 billion traded in 9,653 deals.
The consumer goods industry followed with 43.651 million shares worth N2.754 billion in 2,231 deals.
The third place was occupied by the oil and gas industry, with a turnover of 28.892 million shares, worth N558.264 million in 1,430 deals.