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Business News

SEC threatens to suspend outdated accounts, to address unclaimed dividends 

Bisi Fayemi, First Lady of Ekiti state has called on the Federal Government to ban imported Aso-Oke fabrics saying it would boost economic growth.

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SEC plans to develop derivatives trading market this year, Ponzi Schemes beware, SEC is coming for you 

The acting Director-General of the Securities and Exchange Commission (SEC), Mary Uduk, has disclosed that outdated accounts would be suspended as SEC makes effort to settle unclaimed dividends in the capital market.

Ban on outdated accounts: Uduk said new initiatives would be implemented to curb unclaimed dividends in 2020. She also said that to resolve all issues and ensure shareholders update their information, capital market operators would be afforded a period of time to comply. The update is necessary as transaction will not occur on any account without updated information.

SEC expresses its commitment to protecting investors against high charges, Mary Uduk, Mary Uduk

“Right now, you will not get unclaimed dividends from new issues. Part of the problem of unclaimed dividend has to do with identity management. We are doing all we can to educate the public on this issue and engaging various stakeholders to be able to get a lot of the information that we require.

She said, “Items like the Bank Verification Number have been added to help in identity management; the capital market is also taking advantage of it. The Central Securities Clearing System and the registrars are working together to ensure that more information from the legacy shareholders are being collected to be able to update their information and get them to claim their dividends.

“The registrars do not have direct interface with shareholders, they deal directly with stockbrokers; but there is a committee comprising the SEC, registrars, stockbrokers, issuing houses, the CSCS and the Nigerian Stock Exchange, working on that in addition to the e-dividend management committee.”

[READ MORE: Capital market experiences significant drop of unclaimed dividends)

What you need to know: Uduk said the information update was a legacy issue. According to her, many Nigerians bought shares in the capital market in 2008 before the introduction of Bank Verification Number (BVN). It was disclosed that some of the investors agreed to update their information after initially not providing their account numbers. The updated information was expected to be transmitted to the CSCS,  which would update the information and send them to the registrars.

At the last, Capital Market Committee meeting, it was agreed that stockbrokers would update the information of their clients. This, she said would address unclaimed dividends.

“We believe that by the time we commence that, it will address that issue of unclaimed dividend.

“Before you can complete the application, the system will validate your account number; it will not accept incomplete application.

“We believe that in addition to the e-dividend mandate, these other initiatives that the commission is doing with other stakeholders will address the issue of unclaimed dividends,” she said in a Punch report.

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Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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    Business News

    Heavy sell-off in Guinness shares leads to N6.9 billion market value loss in a single day

    Shares of Guinness Nigeria Plc suffered a 9.89% loss today.

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    Guinness Nigeria Plc Reports Full Year F19 Results

    Guinness Nigeria Plc suffered a 9.89% loss today following a heavy sell-off in the shares of the brewer. This triggered a market value loss amounting to about N6.9 billion at the close of trading activities on the Nigerian Stock Exchange, as investors scaled-down stakes in the brewer.

    Data tracked at the close of the market today revealed that the shares of GUINNESS declined from N31.85 per share at the market open, to N28.70 per share at the close of the market today, to print a loss of 9.89%.

    This decline saw the market capitalization of the leading maker of beer and spirits fall from N69.75 billion to N62.86 billion at the close of trading activities today, putting the total market value loss at N6.89 billion.

    The shares of Guinness at the close of the market today cleared at N28.70 per share, 9.89% lower than the closing price of N31.85 per share yesterday.

    At the current price, Guinness shares are currently trading 20.27% lower than their 52-week high of N36.00 per share. However, the shares of the company have returned about 120.8% gains for investors who bought them at their 52-week low trading price of N13.00 per share last week.

    During trading hours on the Exchange today, about 159,380 ordinary shares of Guinness Nigeria Plc worth about N4.57 million, were exchanged in 27 executed deals.

    The shares of Nigerian Breweries Plc and Golden Guinea Breweries Plc closed flat at N50.1 per share and N0.81 per share respectively, while the shares of International Breweries Plc shed 0.88% to close low today at N5.65 per share.

    What you should know

    • At the close of trading activities today, the NSE All-Share Index and market capitalization appreciated by 0.29% to close higher at 39,128.34 index points and N20.477 trillion respectively.
    • The NSE Consumer Goods Index, an investable benchmark designed to track the performance of the shares of consumer goods companies like Guinness Nigeria Plc, depreciated by -0.35% to close the day lower at 553.26 index points.

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    Business News

    NAICOM revokes operational licence of UNIC Insurance, appoints Receiver/Liquidator

    NAICOM stated that it had appointed Hadiza Baba Gimba as the Receiver/Liquidator to wind up the affairs of the company.

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    Recapitalisation: 26 firms get NAICOM's approval

    The National Insurance Commission (NAICOM) on Wednesday announced the withdrawal of the operational licence issued to UNIC Insurance Plc.

    Although no official reason has been provided for the revocation of the insurance firm’s operating license, NAICOM, however, stated that the decision of the regulator was in the exercise of the powers conferred on it by the enabling laws.

    According to a report from the News Agency of Nigeria (NAN), this disclosure is contained in a notice which was issued by the commission in Lagos to the general public and policyholders, where it noted that the revocation of the operational license, RIC 043, is with effect from March 25.

    NAICOM, thereafter stated that it had appointed Hadiza Baba Gimba as the Receiver/Liquidator to wind up the affairs of the company.

    NAICOM in its statement said, “The general public/policyholders are by this notice required to direct all inquiries and correspondence regarding UNIC Insurance to the receiver/liquidator.

    The receiver/liquidator will be dealing with the company’s liabilities in accordance with the provision of Insurance Act 2003.’’

    What you should know

    • It can be recalled that NAICOM, for the third time in June 2020, gave insurance firms in the country a one-year extension to meet the recapitalisation obligation that was recently set for them apparently due to the coronavirus pandemic which had disrupted the activities of most insurance companies.
    • Some insurance companies had been going through some bad patches with a good number of them struggling to meet up with their obligations and the recapitalization requirements.
    • The recapitalisation programme requires life insurance firms to meet a minimum paid-up capital of N8.0 billion, up from N2.0 billion previously. In the same vein, general insurance companies are required to raise their minimum paid-up capital to N10.0 billion from N3.0 billion previously.
    • The regulatory capital for composite insurance was raised to N18.0 billion from N5.0 billion previously while reinsurance businesses are now required to have a minimum capital of N20.0 billion from a previous N10.0 billion.

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