ABUJA – The Security and Exchange Commission (SEC), and the Institute of Capital Market Registrars (ICMR), have been urged to resolve their differences amicably,
The Senate Committee on Ethics, Code of Conduct and Public Petitions, gave the advice when the SEC was responding to a petition brought against it by ICMR before the committee in Abuja on Tuesday.
Sen. Akin Akinyurele, the Chairman of the committee, advised both parties to ensure the matter was resolved amicably.
“When we started these proceedings, I thought I would be able to help us find a middle ground, but hearing now that the matter is in court further puts us in a difficult position.
“At this juncture, we cannot make any recommendations to the Senate because we lack the authority to do so as the matter has become a matter of litigation.
“However, I would only plead with SEC as the regulatory body to take it easy with the Registrars’’, he said.
According to him, telling ICMR to pay up to 100 per cent of unclaimed dividends will mean sending them out of the market.
ICMR had approached the Senate with a prayer to stop the commission’s directive to return unclaimed dividends of 15 months and above to the paying companies.
Mrs Saadatu Bello, the Executive Commissioner, Legal and Enforcement of SEC, had said the directive was issued to give room for efficient and transparent dividends payment system.
According to her, it is in line with the provision of Section 382 of the Companies and Allied Matters Act (CAMA).
“The commission observes the alarming quantum of unclaimed dividends of N79.8 billion as at June 30, 2014. This trend will continue to escalate if left unchecked.
“It was discovered from the returns filed with the commission by registrars that majority of them depend on the interest earned on the unclaimed dividends warrant and retain the unclaimed dividend.’’
According to Bello, further analysis of the financials of some registrars by the commission shows that between 40 and 80 per cent of their income comes from accrued interest on unclaimed dividends.
“The registrars invest these unclaimed dividends at their discretion; this poses some challenges of transparency and accountability on the interest of unclaimed dividends.
“If this practice is allowed to continue unchecked, it will affect the confidence of the investors which will in turn impact negatively on the market and the economy in general.
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