SEC Stops Issuance Of Dividend Paper Warrants

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Dividend Warrant

Enterprise Television- SEC Stops Issuance Of Dividend Paper Warrants

Securities and Exchange Commission on Tuesday directed all registrars to stop the issuance of dividend paper warrants. The stoppage of the issuance of dividend paper warrants took effect from 1 January this year, adding that all paper warrants issued up till December 31, 2017 were still valid and should be honored by banks.

The Acting Director-General, SEC, Dr. Abdul Zubair, said this during a media briefing on the capital market initiatives of the commission. He also stated that the commission, in a bid to encourage many investors to consolidate their multiple subscriptions into a single account, had also extended the forbearance for multiple accounts till March 2018.

He also stated that the commission, in a bid to encourage many investors to consolidate their multiple subscriptions into a single account, had also extended the forbearance for multiple accounts till March 2018.

Zubair added, “Investors that bought shares of the same company during public offers, using different names, are allowed till March 31, 2018 to continue to approach their stockbrokers or registrars, to regularise their shareholdings in line with SEC directive on customer identification.

A dividend paper warrant is a financial instrument in form of a cheque issued by a quoted company to its shareholders through which dividend is paid to shareholders.