SEC Guarantees Secure Access to E-Dividend Portal for Investors

The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has assured investors that the e-dividend portal is secure when accessed through the SEC’s official website.

In a statement released by the SEC on Sunday, Dr. Agama emphasized the safety and security of the process, encouraging investors to take advantage of the portal to mandate their accounts.

He pointed out that the only other legitimate site for accessing the e-dividend portal is the Nigerian Interbank Settlement System (NIBSS) website, which partnered with the SEC to develop the platform.

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Dr. Agama highlighted the importance of using the official SEC website (www.sec.gov.ng) to avoid potential cybersecurity threats, stating, “It’s important to use the SEC website, which is fully protected, to avoid falling victim to cloned websites.”

also explained that the requirement to input Bank Verification Numbers (BVN) on the portal is crucial for verifying investor identities, ensuring that only legitimate investors can access their accounts.

list of measures to ensure secure access

Revamped E-Dividend Mandate Management System (e-DMMS): The SEC has launched a revamped e-DMMS portal that includes a self-service interface. This allows investors to mandate their accounts for e-dividends virtually, without needing to visit a registrar or bank

Centralized Portal: The Securities and Exchange Commission is developing a centralized portal to facilitate the seamless submission and processing of e-dividend mandate forms. This initiative is designed to decrease unclaimed dividends and enhance the efficiency of the system.

Enhanced Security Features: The new e-dividend portal incorporates advanced security measures to safeguard investors’ data and guarantee secure transactions.

Continuous Monitoring and Updates: The SEC persistently oversees the portal and revises its security measures to counteract any new threats, thereby safeguarding the confidentiality of investors’ information.

According to the regulatory body, the revamped e-DMMS Portal introduces a “self-service interface” that allows investors to mandate their accounts for e-Dividend virtually, without having to visit a registrar or a bank.

In August 2023, the total value of unclaimed dividends rose to N190 billion, representing a 7.35 per cent rise from N177 billion recorded in 2021, which was the last figure from the SEC.

The management said the initiative is another important step towards curbing the growth of unclaimed dividend and generally improving investor experience in the Nigerian capital market.

Investors whose shareholding accounts appear on the list of non-mandated accounts hosted on the commission’s website (ww.sec.gov.ng/non-mandated) are advised to use the new self-service portal by clicking on the “NIBSS Self Service” link or log on to https://docuhub3.nibss-plc.com.ng/edmms/self-service.

“We need to ensure that you are who you claim to be. If the BVN provided does not match your identity, it indicates that the account may not belong to you,” he added.

Discussing the issue of unclaimed dividends, Dr. Agama reiterated the SEC’s commitment to addressing this challenge, noting that the Senate Committee on Capital Market had recently held a hearing on the matter.

He explained that improper identification of investors is a major reason for unclaimed dividends, and the SEC is actively working on solutions, including leveraging technology to improve the process.

“The SEC is leading efforts to reduce and eventually eliminate unclaimed dividends. We will continue to use technology, education, and other methods to help investors claim their dividends and understand the necessary processes,” he stated.

Unclaimed dividends refer to dividends that have not been paid to investors. To tackle this issue, the SEC recently launched a revamped e-Dividend Mandate Management System (e-DMMS) portal, offering a self-service interface that allows investors to mandate their accounts for e-dividend without needing to visit a registrar or bank.

he Securities and Exchange Commission (SEC) of Nigeria has implemented several measures to ensure secure access to the e-dividend portal:

These measures are part of the SEC’s broader strategy to improve investor confidence and streamline the dividend payment process in the Nigerian capital market.

Everything you should know about E-Dividends:

E-dividends refer to the electronic payment of dividends directly into a shareholder’s bank account. This method eliminates the need for physical dividend warrants and ensures faster, more secure, and convenient access to dividend payments.

Benefits of E-Dividends:

Speed and Efficiency: Payments are processed faster compared to traditional methods.

Security: Reduces the risk of lost or stolen dividend warrants.

Convenience: Shareholders receive payments directly into their bank accounts without the need to visit a bank or registrar.

Cost-Effective: Saves costs associated with printing and mailing physical warrants.

These benefits make the e-dividend portal a valuable tool for investors looking to streamline their dividend payment process and enhance their overall investment experience.

How to Register for E-Dividends:

Self-Service Portal: Shareholders can use self-service portals provided by their registrars or the SEC to mandate their accounts for e-dividends.
Bank Registration: Shareholders can also approach their banks to complete the e-dividend mandate form.
Registrar Assistance: Registrars often provide assistance in registering for e-dividends.

Global Examples:

Bursa Malaysia offers e-dividend services, enabling the electronic disbursement of cash dividends directly into the bank accounts of shareholders

The Thailand Stock Exchange offers e-dividend services, which streamline the process of transferring dividends and other monetary benefits directly into shareholders’ bank accounts.