Stakeholders in the capital market under the aegis of the Capital Market Committee (CMC) yesterday called on the Central Bank of Nigeria (CBN) to bring out a new policy allowing banks to accept the payment of dividend warrants into savings accounts by shareholders.
The CMC comprise capital market regulators and all operators.
Briefing the press on some of the decisions taken at the second quarterly meeting of the CMC in Lagos, the Director-General of the SEC, who is also the chairperson of the committee, Ms. Arunma Oteh, said they resolved to continue to work with the CBN governor, Mr. Godwin Emefiele, so as to ensure that issues of mutual importance are tackled.
At present, most of banks do not accept the payment of dividend warrants into savings accounts, a situation that has also contributed to the high level of unclaimed dividends in the market.
But Oteh said the CMC discussed this issue at the meeting and is working on how the CBN would address the situation.
“We highlighted some things we think the CBN can do to help the capital market and support investors. One of them is clearly the issue of how dividend for retail investors can be tackled. A situation where the CBN can allow the payment of dividend warrants into savings account as well as their current accounts.
"We know some banks already doing this. But we do hope that the CBN will get to a point where it can direct all banks to accept dividend warrants into savings accounts. This is very critical even as we tackle the issue of unclaimed dividends,” Oteh said.
On the complaints management framework, which is expected to properly address investors’ grievances, Oteh said it will soon be made public.
According her, the subcommittee has submitted the report to SEC and is going through final exposure to stakeholders.
“We have circulated the report to all stakeholders. After a limited period of time, if we do not receive additional comments, we will then formally announce the new complaints management framework,” she said.