CAPITAL MARKETS REGISTRARS CLARIFIES ROLE ON UNCLAIMED DIVIDENDS
The Capital Market Registrars (CMR) has addressed growing public concerns about unclaimed dividends in Nigeria’s capital market, emphasizing that registrars are not solely responsible for the problem.
Jonathan Eborah, CEO of CMR, explained that:
• The issue of unclaimed dividends is complex and systemic, involving stockbrokers, issuing companies, banks, and regulators – not just registrars.
• Blaming registrars alone oversimplifies the problem.
Key reasons for unclaimed dividends include:
• Multiple shareholder accounts under different names or pseudonyms.
• Shareholders failing to update bank details or contact information.
•
Estate issues after the death of shareholders.
•
Banks delaying dividend mandate validation.
• Investor ignorance about claim procedures.
On verification delays:
• Registrars must follow strict risk management and compliance measures such as BVN, NIN, and signature verification to prevent fraud, impersonation, and identity theft.
• Delays can also occur if shareholders submit inconsistent data, banks fail to update mandates, or documentation is missing — sometimes due to old paper-based records.
Eborah’s advice to investors:
•
Complete your e-dividend mandate.
• ️ Attend SEC and company dividend clinics.
• Participate in Annual General Meetings (AGMs).
• ️ Work with regulators and stockbrokers on sensitization campaigns.
Bottom line: Unclaimed dividends are a shared responsibility, and solving the problem will require cooperation from all stakeholders in the market.
The Capital Market Registrars (CMR) has addressed growing public concerns about unclaimed dividends in Nigeria’s capital market, emphasizing that registrars are not solely responsible for the problem.
Jonathan Eborah, CEO of CMR, explained that:
• The issue of unclaimed dividends is complex and systemic, involving stockbrokers, issuing companies, banks, and regulators – not just registrars.
• Blaming registrars alone oversimplifies the problem.
Key reasons for unclaimed dividends include:
• Multiple shareholder accounts under different names or pseudonyms.
• Shareholders failing to update bank details or contact information.
•
Estate issues after the death of shareholders.•
Banks delaying dividend mandate validation.• Investor ignorance about claim procedures.
On verification delays:
• Registrars must follow strict risk management and compliance measures such as BVN, NIN, and signature verification to prevent fraud, impersonation, and identity theft.
• Delays can also occur if shareholders submit inconsistent data, banks fail to update mandates, or documentation is missing — sometimes due to old paper-based records.
Eborah’s advice to investors:
•
Complete your e-dividend mandate.• ️ Attend SEC and company dividend clinics.
• Participate in Annual General Meetings (AGMs).
• ️ Work with regulators and stockbrokers on sensitization campaigns.
Bottom line: Unclaimed dividends are a shared responsibility, and solving the problem will require cooperation from all stakeholders in the market.