In a bid to reduce the huge quantum of unclaimed dividends in the capital market, the Securities and Exchange Commission (SEC) has disclosed its intention to partner with relevant stakeholders to sensitise investors.
Announcing the Commission’s plan, the acting Director-General, SEC, Mary Uduk made known that there is a need for investors to regularise their multiple accounts to enable them to claim their dividends.
[READ MORE: SEC introduces flexible timelines, new costs for transmission of shares]
According to Uduk, the Commission had advanced its commitment to ensure that shareholders benefit from their investments in the capital market.
“Only recently, in our determination to reduce the quantum of unclaimed dividends in the capital market and encourage beneficiaries of deceased investors to step up efforts to claim such dividends, the Commission exposed an amendment to our rules, which reduced the time, processes and costs of the transmission of shares from a deceased to the beneficiary.”
The SEC boss expressed her optimism that the recent effort put in place by the Commission, would ensure seamless transmission and claim of deceased’s shares by heirs and administrators.
Prior to this development, in order to find an enduring solution to the perennial unclaimed dividend issue, the capital market regulator, about two weeks ago, cut the turnaround time for processing and transferring shares from dead shareholders to their beneficiaries from three weeks to one week.
Why this Matters: The decision will not only help beneficiaries of deceased investors to promptly receive their shares and dividend bequests, it will also guarantee service efficiency on the part of SEC, which will, in turn, enhance its corporate image.
Also, with the new development, beneficiaries and administrators of the deceased’s estates will have the confidence to approach companies where their benefactors held shares to claim their inheritance.
[READ ALSO: SEC advises defunct Skye Bank shareholders to process unclaimed dividends]
