SEC order transfer 12 years unclaimed dividends into the Nigerian Capital Market Development Fund

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SEC Unclaims Dividends

The Nigeria Securities and Exchange Commission (SEC) is proposing to apply new rules for unclaimed dividends. According to the proposed rules, dividends which remain unclaimed after the 12-year threshold will be transferred into the Nigerian Capital Market Development Fund.

In a statement sent by media division of the Apex said “Pursuant to the provisions of Section 313(1)(n) of the Investments and Securities Act (ISA) 2007, the Commission hereby proposes that: Companies and Registrars in custody of dividends which remain unclaimed by shareholders 12 years after the date of declaration or subsequently attain the 12 years threshold shall upon the coming into effect of this Rule transfer such monies into the Nigerian Capital Market Development Fund (NCMDF).

Part of the proposed rule read that “All companies and registrars shall not later than 30 days after the end of every calendar year forward to the Commission a report of unclaimed dividends in their custody, which shall specify compliance with Sub Rule (1) of this Rule. The SEC also proposed that “Companies shall disclose details of compliance with this Rule in their annual reports.”

However, management of the Commission thuaght wise saying “all comments and input on the matter, be forwarded to the Secretariat, Rules Committee of the Commission, via, rulescommittee@sec.gov.ng or through the DG, SEC, not later than two (2) weeks from the date of publication.”


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