SEC: e-Dividend portal upgrade tackles unclaimed dividends

The Security and Exchange Commission (SEC) says its e-Dividend Mandate Management System (e-DMMS) portal was upgraded to address the issue of unclaimed dividends in the Nigerian capital market.

This new portal serves as a self-service interface, SEC says, allowing investors to easily apply to mandate their accounts for e-dividends online, eliminating the need to physically visit a registrar or bank.

SEC, which announced launch of the e-DMMS portal in June says it part of ongoing efforts to reduce unclaimed dividends and enhance the overall investor experience in the Nigerian capital market.

SEC says e-dividend portal is crucial step forward

This initiative is a crucial step towards addressing the growing concern of unclaimed dividends which are dividends that a shareholder is owed but has not yet claimed or collected. This can occur due to various reasons, such as a change in address, death of the shareholder, or lack of awareness, according to SEC.

SEC said it initiated measures to tackle unclaimed dividends on March 7, 2024, following a notable increase in the total value of unclaimed dividends to ₦190 billion in August 2023, representing a 7.35% rise from ₦177 billion in 2021.

SEC announced that investors with shareholding accounts listed as non-mandated on the Commission’s website are encouraged to utilise the new self-service portal by accessing the “NIBSS Self Service” link or visiting EDMMS Self Service.

Also, investors can also register for the collection of unclaimed dividends and subsequent dividends electronically through their registrars or banks. For additional information and guidance, investors are advised to refer to the Frequently Asked Questions (FAQs) provided on the Commission’s website. They have the option to utilize buff.ly/3zsMhMC or https://buff.ly/4eRX9UA, or simply scan the QR codes provided by SEC.

About SEC

SSEC was established on January 1, 1980, with the primary objective of regulating and developing the Nigerian capital market. The SEC plays a crucial role in determining the prices of issues and setting the basis for the allotment of securities. Unlike its predecessors, the Commission was separated from the Central Bank of Nigeria (CBN) at this stage, although it continued to receive funding from the apex bank.

Before the establishment of the SEC, the Capital Issues Committee operated under the umbrella of the CBN. The committee’s main responsibility was to review applications from companies seeking to raise capital from the market and recommend the timing of such issues to prevent market saturation. The Capital Issues Commission was then established in 1973 due to an increase in economic activities and the promulgation of the Nigerian Enterprises Promotion Decree in 1972. This led to the regulation of capital market activities and the subsequent creation of the Capital Issues Commission to take over the committee’s functions.

To address emerging challenges, the powers of the Capital Issues Commission needed to be strengthened. In 1976, the Federal Government established a Financial System Review Committee to assess capital market activities and propose strategies for market development. The recommendations of this committee led to the establishment of the Securities and Exchange Commission in 1979, following the enactment of the Securities and Exchange Commission Decree No. 71 of 1979. This new Commission superseded the Capital Issues Commission and has since played a vital role in regulating and developing the Nigerian capital market.