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The Securities and Exchange Commission has stated that it is not against the proposal by the Federal Government to set up unclaimed dividends and balances trust fund.
This was disclosed by the Head, Securities and Investments Services (SIS) Department, SEC Mr. Abdulkadir Abbas while making clarifications on the Commission’s presentation at the one (1) day Public Hearing on the Finance Bill, 2020 in Abuja.
He said the Commission is requesting to be allowed to continue to constructively manage the issue of unclaimed dividends for the development of the nation’s capital market.
Dividends are cash rewards that a company gives to its shareholder.
According to him, the commission is not against the proposal to set up unclaimed dividends and balances trust fund, saying its concerns are with respect to the governance structure of that proposed fund and that is why we are asking for reconsideration. “We are advocating modifications of the provisions with regards to management and governance of the trust fund to avoid possible harm to the capital market which is still struggling to survive.”
He said SEC being the capital market regulator and mandated by the Investments and Securities Act to protect the interest of the investors, should be the one to administer or to manage or to supervise the operations of that fund, that is what it is requesting.
