SEC amends framework for transmission of shares to curb rising unclaimed dividends


In a bid to reduce rising unclaimed dividend amounting to over N70 billion, the Securities and Exchange Commission, SEC has amended the draft on the operating framework for the transmission of shares from a deceased to the beneficiary.

Securities and Exchange Commission SEC In the amended draft, the Commission reduced the timeline for the transmission of deceased’s shares from three weeks to one week. To this development, the SEC encourages beneficiaries of deceased investors to step up efforts to claim such dividends.

The spokesperson for the Commission, Efe Ebelo, who revealed this in a statement yesterday said: “Going by that, Registrars shall ensure that shares of a deceased are transmitted within a week of receiving the request from the administrators or executors.”

Under the amended draft, “The Registrar is also required to transmit the Letter of Administration to the Probate Registry within 24 hours of receipt of same for verification.

“The administrators/executors are however required to provide a letter of Introduction introducing themselves as the legal representatives of the Estate.

The letter should also indicate the names, addresses, signatures and BVNs of the individual Administrators/Executors. Also required is original Death Certificate from the National Population Commission (NPC) for sighting, original probate letter or Letter of Administration for sighting or the Certified True Copy (CTC) from a Notary Public. Others are copy of newspaper advert placed by the Court or Gazette, any evidence of ownership of the investment i.e.

CSCS statement(s) of the deceased, original share certificates, dividend stub or dividend warrants or bank statement(s) showing receipt of dividend(s) into the account(s) of the deceased. “Where the Administrator/Executor cannot provide these requirements, the Registrar may require confirmation through insurance, indemnity or interview” the SEC stated.

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