Investors can now accept their dividend warrants directly in their savings accounts. This was made known to the public by the Securities and Exchange Commission (SEC) in a circular on its website. The circular, signed by its management, stated that this development followed the several steps taken by the CBN and the SEC to ensure that an end to the growth in unclaimed dividends in Nigeria was achieved.
One of such steps included the e-Dividend Mandate Management System (e-DMMS) as an online portal for enrolling investors. As such, any retail investor who has enrolled on the platform using their Bank Verification Numbers (BVN) is eligible to receive dividend warrants directly in his or her accounts.
In addition, investors who previously had failed to claim their dividends are also liable to enjoy this facility. The earlier practice was that any investor operating only a savings account could not claim dividend from their investments, thereby severely hindering the claiming of dividends and thus the retail investment market. This new directive is expected to serve as a turning point, signaling easier dealings for retail investors in the capital market.
The directive further encouraged retail investors, who had not yet done so, to approach their banks and enroll on the e-dividend platform for free to enjoy this benefit.