How is the last transaction batch meant for the closure of register handled?
The NSE marks securities on their closure dates. *Once again, settlement cycle is T+3 (Transaction day plus three working days). ONLY settled transactions are forwarded to the registrars for processing. An Example: If a quoted company, say NIGERIA PLC is to close on June 19, 1998 it follows that:- * The NSE will mark the security on June 19, 1998 * The last Cum-Div/SCRIP transaction day will be June 18, 1998. * Settlement day for the last CUM-DIV/SCRIP transaction becomes June 18 plus 3 working days. This translates to June 25, 1998. * The earliest time the transaction can get to the registrar for processing is June 26, 1998. From the above analysis, the company secretaries/registrars are advised to accommodate the transaction advice by ensuring that the registers are closed for at least eight (8) days. Indeed, secretaries/registrars have been advised to allow for 10 working days after closure of regsiter before paying dividends.
