Fund manage seeks SEC intervention to resolve unclaimed dividends problem
By Oludare Mayowa
The capital market regulator, the Securities and Exchange Commission (SEC) should compel companies to release dividends to their shareholders to them as at when due to boost retail investors’ confidence in the market, the chief executive of APT Securities Limited has said.
“What will restore the confidence of the retail investors; from the beginning of the year, it is the domestic investors that are taking the market up
“I want the regulator to ensure that the dividends of small investors get their alert as at when due. all this claimed dividend we don’t want it. We have BVN, even if you ten names the same name you will never the same BVN. So let them use the BVN to make sure that dividends are pay when due.
“The more people get alert the more they invest in the market. so can imagine the confidence of investors will rise if all companies pay dividends as when due,” Kufi said in an interview with Global Financial Digest.
The regulator should ensure that the registrar that withhold investors dividends should be made to pay a penalty on such funds to discourage the accumulation of unclaimed dividends in the market.
He said many registrars like to keep shareholder funds in the vault for as long as they can and said that unless such registrars are punished, they will continue to deprive shareholders of their money.
The APT chief also projected that the equities market may record double-digit return at the end of this year against the backdrop of the recent decline in savings deposit interest rate and yields on local debt market.
Last month, the Central Bank of Nigeria (CBN) slashed its benchmark interest rate downward by 100 basis points to 11.5 percent in a move to boost credit to the productive sector of the economy.
Kurfi said the low yields environment and low interest rate on savings deposits will lure more investors into the capital market to tap the current growth in the stock market to increase the value of their investments.
He said the equity market has continued to grow because of low yield regime and the fact that most companies listed on the NSE board are increasing shareholders’ value.
Kurfi projected that the stock of Lafarge Africa, United Bank for Africa, Access Bank, Zenith Bank, and Dangote Cement will lead the market to positive closure at the end of this year.
He said with the trend of dividends paid by the five companies so far this year will ensure that more investors will buy the shares of the firms and ensure they close the year on a positive note.