E DIVIDEND TAKES EFFECT

HELLO,

the E -dividend mode of dividend payment was launched monday in lagos and has already taken effect with the payment last week of Oando and Nigerian Breweries shareholders through the system .Major stakeholders were present .I bring you a report on that

 

E DIVEND PAYMENT BEGINS

 

FINALLY ,e –dividend was lauched-in Lagos State . ‘Hence forth ,the crediting of dividends into share holdres acc ount will be done 24 hours after the company had paid the money ‘this statement by Mrs Oguntuwase who represented the Lagos Staste Governor Babatunde Fashola at the launch marked a change in the payment of dividend in the the Nigerian Stock Market .In fact the representative of Nigerian Inter Bank Clearing System –NIBSS,Mr Paul Lawal said that e dividend payment had already commenced with the payment of Oando and Nigerian Breweries shareholders as at last week .

Oguntuwase added that e –dividend will boost the image of the Securities and Exchange Commission and the Nigerian Stock Exchange adding that it is in consonance with the due process plan of the Federal Government

E dividend payment is the payment of dividend to shareholders online .

The launching which took place at Sheraton Hotel and Towers was attended by major stakeholders in the Nigerian Capital and Money Market was declared open by the Director General of the Securities and Exchange Commission who was represented by Mrs Daisy Ikhine.Mrs Ikhine says e –dividend will minimize unclaimed dividend ,eliminate dividend loss in transit ,discourage the forfeiture of dividends in the future and also enhance the ability of shareholders to immediately access and utilize the proceeds of their investments She added that the commission had issued formal letters to the respective stakeholders to meet their implementation modalities .Some of these modalities include meeting of payment obligations by the issuers immediately after the declaration of dividends at AGMS,The upgrading of the iformation technology infrastruture by Registrars ,The inclusion of shareholders data and information in the share transfer forms while banks are to authenticate shareholders signatures

NIBSS representative Mr Lawal in describing how the e-dividend works said that all that is needed is for the Registrars to have a computer ,a modem and a line that will be connected to NIBSS .He said that e- dividend is so structured in such way that files cannot be intercepted and that even if they are intercepted they will not be of use to a third a party

In addition ,the Nigerian Interbank Settlement System NIBSS in conduction with Registrars has produced an operational manual in other to ensure the success of the e – dividend. An educative pamphlet as also been made available in the three major Nigerian languages including pidgin

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The president of the Chattered Institute of Stock brokers-CIS,advised SEC to put in place a checks and balances measure in other to make sure that companies and other stakeholders play their part in the e –dividend mode of dividend payment

A financial analyst,Mr Amaeze Olisaemeka who spoke to us on the e- dividend says it has a lot of advantages which includes quick access to dividend by shareholders , the increase of liquidity in the system ,market tranparency and the boosting of investors confidence.

 

E dividend was first launched in Abuja on febuary 28^th by the Minister of State for Finance Mr Oluremi Babalola .

 

Mrs Ikhine also added that SEC will soon introduce e-IPO and E-Allotment ,which is expected to eliminate share certificate .She says that after the issuance of e- Allotment ,the issuance of share certificates will be by special request as some institutional investors may have a need for share certificates