SEC accuse CMOs of irritating e-dividend mandate course of

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The Securities and Exchange Commission (SEC) has faulted the actions of some Capital Market Operators (CMOs) which frustrates the e-dividend mandate course of, resulting in an increase in unclaimed dividends within the capital market.

This is because the unclaimed dividends within the capital market have been estimated to have risen to over N200 billion.

According to a report from the News Agency of Nigeria (NAN), this disclosure was made by the Director-General of SEC, Lamido Yuguda, whereas talking on the 2021 first post-Capital Market Committee (CMC) digital information convention.

What the Director-General of SEC is saying

Yuguda, in his assertion, mentioned that the fee was conscious that some CMOs have been irritating the e-dividend mandate course of.

He mentioned, “We implore all stakeholders to adjust to all directives of the Commission on this regard, as defaulters could be sanctioned appropriately. We have noticed that the expansion within the variety of mandated accounts has been on the decline for a while.

The capital market group has directed its e-Dividend Committee to have interaction with the Committee of Heads of Banking Operations to encourage higher cooperation from banks as we sort out the challenges of unclaimed dividends.’’

The SEC boss reminded all CMOs that the fee’s directive on the replace of buyers’ Know Your Customer data was nonetheless in impact noting that the extent of compliance had been low regardless of a number of engagements by the fee.

Yuguda revealed that 4.01 million accounts nonetheless have incomplete KYC data as of April 8 regardless of the federal government’s efforts.

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He mentioned, “Despite a number of engagements, we realised that as of April 8, there have been nonetheless 4,012,311 accounts with incomplete KYC data. This train is important to deepening the participation of retail buyers and we direct all CMOs to accord it the very best degree of precedence.’’

In case you missed it

  • SEC had earlier urged all Capital Market Operators (CMOs) to replace their buyers’ Know Your Customer data as a result of low degree of compliance.
  • The CMOs have been additionally warned by SEC to cease offering any type of assist to unregistered entities working unlawfully within the nation inside the capital market as that may not be condoned.

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