All dividend warrants to be cross-checked: SECP
All listed companies to issue dividend warrants only in the name of the registered members crossed as “A/C payee only”
ISLAMABAD:
The Securities and Exchange Commission of Pakistan (SECP) has approved a notification directing all listed companies to issue dividend warrants only in the name of the registered members crossed as “A/C payee only”, which is now pending publication in the official gazette, according to a press statement issued on Thursday.
It has further been advised that when a shareholder has specifically instructed a company to issue dividends in the name of any third person, it should also be issued through a similarly crossed dividend warrant bearing the name of the nominated person. Besides aiding transparent reporting at all levels, this will also discourage the prevalent trend of ‘benaami’ transactions in shares.
Published in The Express Tribune, August 5th, 2011.
The Securities and Exchange Commission of Pakistan (SECP) has approved a notification directing all listed companies to issue dividend warrants only in the name of the registered members crossed as “A/C payee only”, which is now pending publication in the official gazette, according to a press statement issued on Thursday.
It has further been advised that when a shareholder has specifically instructed a company to issue dividends in the name of any third person, it should also be issued through a similarly crossed dividend warrant bearing the name of the nominated person. Besides aiding transparent reporting at all levels, this will also discourage the prevalent trend of ‘benaami’ transactions in shares.
Published in The Express Tribune, August 5th, 2011.