The Securities and Exchange Commission (SEC) and Nigerian Exchange Group (NGX Group) Plc, in their plan to fully digitise the capital market, is creating a platform that will be instrumental to raise funds by listed entities while also resolving the growing unclaimed dividend that had risen to N190 billion.
Particularly, the consistent increase in the amount of unclaimed dividend is a major concern for capital market stakeholders even as several efforts, in the past, to trace owners of these unclaimed dividends were futile.
Available statistics shows that the unclaimed dividend was N190 billion in 2022 having risen from N177 billion in 2021.
However, the new platform, when operational, is expected to, among others, ensure seamless payment of dividends to shareholders while possibly tracking those who had unclaimed dividends.
During the event, both entities outlined their joint initiatives to create a digital platform designed to revolutionise the process of raising equity capital in the primary market, with a particular emphasis on public offerings and rights issues.
Subject to SEC approval, this innovative platform represents a significant advancement in digitising the capital raising process for Issuers. Stakeholders are expected to benefit from enhanced efficiency, streamlined due diligence capabilities, ease of use and accessibility, faster information dissemination, and seamless compliance with regulatory requirements, among other features.
