Why e-dividend payment is facing challenges-CEO

The Institute of Capital Market Registrars (ICMR) has said that e-dividend payment policy was facing challenges because many investors were yet accept the policy. Dr. David Ogogo, the Chief Executive of Ogogo said in Lagos that many investors still prefer to collect the dividends manually for reasons known to them.
According to Ogogo, this habit has hindered the successful implementation of the e-dividend payment policy. E-dividend payment, introduced by the Securities and Exchange Commission (SEC) in 2008, is the process of crediting shareholders accounts within 24 hours after payment of dividend by a company.
He said that the institute was ready to work with all stakeholders to ensure the success of the policy. He said that unclaimed dividend profile would reduce drastically if there was total collaboration among the stakeholders. He said that the institute would continue with its enlightenment campaign to ensure that more shareholders embrace the policy.
He explained that e-dividend was a convenient method that ensures that a warrant does not miss in transit. Ogogo urged investors to inform their registrars of any change in address or name, adding that ignorance on part of investors had also contributed to the challenges. He said that investors needed to follow up any change of address or name with their registrars and ensure that the changes were corrected.
Ogogo also urged investors to revalidate expired dividend warrants to curtail the problem of unclaimed dividend. The chief executive called on various shareholder groups to educate their members on the gains associated with e-dividend policy. The institute says it has N45.7 billion unclaimed dividend in its kitty as at Dec.31, 2011.