National Wire About Nigerians, Nigerian Business and Other Stories
Considering the June 30, 2017 deadline given to registrars of quoted companies by the Securities and Exchange Commission (SEC) to stop the issuance of physical dividend warrants to shareholders, investigation has revealed that the much talked about initiative aimed at reducing the growing numbers of unclaimed dividend in the country may have suffered a setback.
According to sources in the registrars community, they disclosed that based on SEC rule and the Companies and Allied Matters Act (CAMA), it will be difficult for the apex regulator in the capital market to enforce the non-issuance of dividend warrants to shareholders. Except they apply for administrative waiver. With this development it’s obvious that the June 30, 2017 deadline may not be feasible as earlier expected.
To this end registrars will continue to be issuing physical dividend warrants, until the legal issues surrounding it are resolved. However, findings shows that SEC is already working on its rules in order to actualize its mandate of market development.
Meanwhile, SEC in a statement Tuesday, disclosed that investors with multiple subscriptions for the same public offer may forfeit their investment. The commission at its last Capital Market Committee meeting (CMC) had approved the report of a market wide committee on formulating a uniform position for the treatment of multiple subscriptions to public offers.
According to a circular from the SEC, “the Nigerian Capital Market cannot and should not be seen to reward the wrongful acts/illegality of the perpetrators. This was with a view to ensuring the global sustainability of the Nigerian Capital Market’s Integrity and Reputation”.
