The Security and Exchange Commission has instructed Registrars in Nigeria to commence payment of dividends in Nigeria via the e-dividend portal. SEC made this pronouncement via a press release on its website. It is hoped that this latest press release will help reduce incidences of lost and unpaid dividends.
Here is the full text of the press release;
To: All Registrars
CIRCULAR ON THE IMPLEMENTATION OF e-DIVIDEND MANDATE MANAGEMENT SYSTEM (e-DMMS) PORTALS
Further to the launching of the e-Dividend Mandate Management System (e-DMMS) Portal on 29thJuly 2015 by the Commission and the subsequent trainings conducted for the staff of your organization, we are happy to inform you that the system is now ready for use by all Banks and Registrars.
In this regard please note the following:
- All Registrars’ offices/accredited outlets shall be points of upload of completed e-Dividend Mandate forms by investors who may alternatively approach their Banker to process their completed e-Dividend Mandate Form(s).
- Every Registrar shall validate investor’s Shareholder Account Number, Name, Signature and Clearing House Number (CHN). This shall be followed with upload of scanned copy of completed e-Dividend Mandate Form(s) on to the portal for immediate access by the investor’s nominated Bank for the verification of his/her Bank account details. Registrars shall exercise caution when validating names generated by the system for the Clearing House Number, Shareholder Account Number and Bank Account Number against the physical form to ensure there is a reasonable level of congruence before the document is accepted and saved on the portal.
- Investors should be educated to complete separate forms for each shareholder account number, as upload of e-Dividend Mandate Forms shall be on the basis of individual shareholder number and company of investment indicated by the investor on the physical e-Dividend Mandate Form.
- The receiving bank may reject the mandate uploaded by Presenting Registrars if the signature on the mandate does not tally with the specimen signature of the account holder in the Bank.
- To mitigate errors in the treatment of e-Dividend Mandate Forms, Registrars shall institute a marker-checker system that enables the verification and upload of e-Dividend Mandate Form(s) by a Registrar Uploader subject to confirmation and approval by a Registrar Checker
- Where Banks uploads e-Dividend Mandates to Registrars for investor detail validation, such mandates must be confirmed by the Receiving Registrar Authoriser within 72 hours (3 days) of transmission by the Presenting Bank Authorizer.
For seamless integration and use of the portal, you are advised to contact NIBSS for the required integration requirements and access rights to the portal and any further clarifications required towards a smooth operation of the new system.
Should you require further clarification, please do not hesitate to contact firstname.lastname@example.org or 01-2716088.
It is therefore mandatory for every Registrar to immediately commence the use of the e-Dividend Mandate Management System Portal as directives will soon be issued to Banks to discontinue the verification of paper mandates presented to Bank Branches.
Please be guided and ensure compliance.
22 SEPTEMBER 2015