The Securities and Exchange Commission (SEC) has reduced the time, processes and the costs of the transmission of shares from a deceased to the beneficiary.
The Nigerian capital market regulator made this known while calling on the beneficiaries of deceased investors to step up efforts to claim their dividends.
This development was announced in SEC’s amendment draft on the operating framework for the transmission of shares.
How shares will henceforth be transmitted: According to SEC, the registrar shall ensure that the shares of a deceased are transmitted within a week of receiving the request from the administrators or executors.
More so, the registrar is required to transmit the Letter of Administration to the Probate Registry within 24 hours of receipt of same for verification.
SEC revealed that the administrators/executors are however required to provide a letter of introduction, introducing themselves as the legal representatives of the estate. The letter should also indicate the names, addresses, signatures and BVNs of the individual administrator/executor.
Also required are original Death Certificate from the National Population Commission (NPC) for sighting, original probate letter or Letter of Administration for sighting or the Certified True Copy (CTC) from a Notary Public.
Others are: copy of newspaper advert placed by the Court or Gazette, any evidence of ownership of the investment, that is, CSCS statement(s) of the deceased, original share certificates, dividend stub or dividend warrants or bank statement(s) showing receipt of dividend(s) into the account(s) of the deceased.
“Where the administrator/executor cannot provide these requirements, the registrar may require confirmation through insurance, indemnity or interview,” SEC stated.
How beneficiaries who want to transmit shares will be charged: The fees chargeable for transmission of shares by registrars are being limited to one per cent of the total value and additional five per cent Value Added Tax (VAT) for shares of N5 million and below, as well as 0.5 per cent of the value and five per cent VAT on shares above N5 million with a maximum chargeable amount of N200,000, excluding VAT.
Finally, fees chargeable for confirmation of Probate or Letter of Administration shall not exceed N12,000.
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