SEC proposes transfer of unclaimed dividend of 12 years to NCMDF

The Securities and Exchange Commission (SEC) is proposing that unclaimed dividend of 12 years and above   be transferred into Nigerian Capital Market Development Fund (NCMDF).

The apex capital market regulator body is also proposing that companies and registrars shall not later than 30 days after the end of every calendar year forward report of unclaimed dividends to the commission.

According to SEC proposed rules, “Pursuant to the provisions of Section 313(1)(n) of the Investments and Securities Act (ISA) 2007, the Commission hereby proposes this Rule: companies and registrars in custody of dividends which remain unclaimed by shareholders 12 years after the date of declaration or subsequently attain the 12 years threshold shall upon the coming into effect of this Rule transfer such monies into the NCMDF.

“All companies and registrars shall not later than 30 days after the end of every calendar year forward to the Commission a report of unclaimed dividends in their custody, which shall specify compliance with Sub Rule (1) of this Rule.

“Companies shall disclose details of compliance with this Rule in their annual reports,” it added.

This is part of the measures to address the rising trend of unclaimed dividends in the nation’s capital market, which has hit the N80 billion mark, banks and registrars have been mandated by both the Central Bank of Nigeria, (CBN) and the SEC to set up e-dividend champions in their respective institutions.