Securities and Exchange Commission (SEC) has created a new e-dividend portal as part of a measure to simplify the process of mandating investors account for electronic dividend payment.
Director General of SEC, Lamido Yuguda who disclosed this in Lagos during the Journalist Academy said the portal expected to become operational on the 30th of November 2023. He said that the portal will help to improve efficiency and ultimately lead to a significant decline in unclaimed dividends in the system.
He further said that the Collective Investment Schemes(CIS) funds had risen from about N1.1 trillion at the beginning of 2020 to about N2.1 trillion at the end of October 2023. The CIS funds otherwise known as investment funds are funds that are pooled together from investors and reinvested into other assets such as cash, bonds or equities with the target of achieving higher returns for the investors.
Yuguda said that the Commission mandated that all CIS funds be held in custody in order to manage risk and entrench trust in collective investment schemes (CIS).
He said that the commission has continued to encourage investors, especially those on the retail end, to approach the market through these CIS funds, as they provide investors with the opportunity to have their investments managed by knowledgeable investment professionals.
Yugudu who was represented by Mr Dayo Obisan, the Executive Director Operation, SEC, said that in a bid to resolve the perennial problem of unclaimed dividends, the Capital Market Committee, under the leadership of the Commission, has embarked on the creation of a new e-dividend portal, which is expected to become operational on the 30th of November 2023.
He said that once it becomes operational, this portal will simplify the process of mandating accounts for e-dividend. This will improve efficiency and ultimately lead to a significant fall in unclaimed dividends.