E-dividend system to curb unclaimed dividend – NSE
The Nigerian Stock Exchange (NSE) has underscored the importance of registration for the electronic dividend payment (e-dividend) system as a key measure to address the recurring issue of unclaimed dividend.
The NSE recently organised an investor clinic to educate capital market stakeholders on the role of dematerialisation, direct cash settlement and e-dividend in the development of the capital market. It was targeted at sensitising the investing public and brokerage community of contemporary initiatives in the market.
NSE’s Market Operations and Technology Executive Director, Mr. Ade Bajomo, said the e-dividend would not only reduce the perennial issue of unclaimed dividend growth but ensure that investors derive the full benefits of their investments by having their dividends paid directly into their bank accounts as soon as these are disbursed by issuers, regardless of whether these are savings or current accounts.
He noted that the NSE Investor Clinic brings to the fore the importance of dematerialisation in ensuring improved market velocity and integrity as well as the role of direct cash settlement in enhancing investor confidence by ensuring that proceeds from the sale of securities are remitted directly into investors’ accounts.
“At the Nigerian Stock Exchange, we are committed to improving overall financial literacy and inclusion in the country, and ensuring we implement efficient processes that provide investors easy and intuitive access to grow their wealth. This commitment is expressed in the various initiatives undertaken by the Exchange,” Bajomo said.
According to him, last year alone, the NSE executed more than 200 free-capacity building workshops, aimed at enhancing investor understanding of the workings of the capital market.
He pointed out that the multiplier effects of these workshops are phenomenal as more than 25,000 participating investors have been equipped to make better investment decisions.
It will be recalled that the Exchange on June 1 launched X-Academy, its financial literacy and inclusion platform designed to provide education services to individual, corporate and government institutions who want to gain a better understanding of the various aspects of the capital markets and also improve overall corporate governance within their respective institutions.
X-Academy offers a wide range of courses geared towards bridging the knowledge gap of investors and issuers about products and services of the capital market. It is also a platform to enhance financial literacy and inclusion and build on our track record of pushing the boundaries of financial education in Nigeria across all segments of investors.
0 Comments