Table of Contents
How to Register for e Dividend in Nigeria
Are you tired of visiting the bank regularly to collect your dividend warrants? Or are you tired of losing track of your shares and dividends? The introduction of e-dividend payment system in Nigeria is a game-changer as it allows investors to receive their dividends directly into their bank accounts without any stress. In this article, we will guide you on how to register for e-dividend payment in Nigeria.
What is e Dividend?
E-Dividend is an electronic payment system that enables shareholders to receive their dividend directly into their bank account. It is a secure and convenient way of receiving dividend payment without the hassle of visiting the bank or losing track of your shares.
Why Should You Register for e Dividend?
There are several benefits of registering for e-dividend payment. Some of the benefits include:
-
Convenience: With e-dividend payment, you don't have to visit the bank regularly to collect your dividend warrant. Your dividend will be automatically paid into your bank account.
-
Timeliness: You will receive your dividend payment on time, without any delays or disruptions.
-
Security: E-Dividend payment is a secure method of receiving dividend payment. It reduces the risk of fraud and loss of dividend warrants.
-
Cost-effective: E-Dividend payment is cost-effective as it eliminates the cost of printing, stamping, and distributing physical dividend warrants.
How to Register for e Dividend in Nigeria
To register for e-dividend payment in Nigeria, follow the steps outlined below:
Step 1: Open a CSCS Account
The first step in registering for e-dividend payment is to open a Central Securities Clearing System (CSCS) account. The CSCS is the agency responsible for the administration, clearing, settlement, and depository of securities transactions in Nigeria. To open a CSCS account, you need to visit any stockbroking firm or registrar and complete the account opening form.
Step 2: Obtain a Unique Investor Identifier (UIN)
After opening a CSCS account, you will be issued a Unique Investor Identifier (UIN). The UIN is a unique identification number that identifies you as a shareholder in the Nigerian capital market. You can obtain your UIN from any stockbroking firm or registrar.
Step 3: Link Your Bank Account to Your CSCS Account
To receive your dividend payment directly into your bank account, you need to link your bank account to your CSCS account. You can do this by providing your bank details to your stockbroker or registrar.
Step 4: Register for e Dividend
After linking your bank account to your CSCS account, the next step is to register for e-dividend payment. You can do this by completing the e-dividend registration form and submitting it to your stockbroker or registrar. The form requires your personal details, your CSCS account number, your UIN, and your bank account details.
Step 5: Confirmation of e Dividend Registration
After submitting your e-dividend registration form, you will receive a confirmation message via email or SMS. The message will inform you that your e-dividend registration has been successful.
Frequently Asked Questions (FAQs)
- Is there a fee for e-dividend registration?
No, there is no fee for e-dividend registration. It is free of charge.
- Can I change my bank account after registering for e-dividend?
Yes, you can change your bank account anytime by completing a new e-dividend registration form and submitting it to your stockbroker or registrar.
- How long does it take to receive dividends after registering for e-dividend?
You will receive your dividend payment within 24-48 hours after the dividend has been declared.
- What happens if I do not register for e-dividend?
If you do not register for e-dividend, you will continue to receive your dividend warrants physically, which can be inconvenient and risky.
- Can I register for e-dividend if I am not a shareholder?
No, you cannot register for e-dividend if you are not a shareholder in the Nigerian capital market.
Conclusion
E-Dividend payment is a convenient, timely, and secure way of receiving dividend payment in Nigeria. By following the steps outlined in this article, you can register for e-dividend payment and start enjoying the benefits of this electronic payment system. Register for e-dividend today and say goodbye to the hassle of collecting physical dividend warrants.
