RULE ON SHARE TRANSMISSION TO REDUCE N100BN UNCLAIMED DIVIDEND
Written by thereachfm on February 25, 2019
Domestic retail investors have commended the decision of the Securities and Exchange Commission, SEC, to initiate rules that will facilitate transmission of investments of a deceased shareholder to the next-of-kin, saying that it will further reduce the incidence of unclaimed dividends currently put at over N100 billion in the market.
According to the SEC, it has come up with a two-pronged approach to address the intractable challenges associated with share transmission, which involves developing rules that will stipulate the time-frame for the transfer as well as the fee structure.
The Commission also said it will engage probate registries around the country as part of the process with a view to enlighten them on the workings of the capital market and reduce the cumbersome process.