The Cyprus Stock Exchange (CSE) on Thursday clarified how listed companies distribute dividends and how investors should handle payments and securities belonging to deceased shareholders, following a surge in enquiries linked to a dividend distribution by Demetra Holdings Plc.

The exchange said it had received a very large volume of telephone and email requests and was making every effort to examine them within a reasonable timeframe.

It urged investors to wait for a response rather than send repeated reminders, warning that frequent follow-ups could delay the processing of requests.

In a statement, the CSE explained that cash distributions, including dividends, bond interest and bond repayments, are made by listed companies through a paying bank.

The exchange may participate in the payment process only in relation to participants of the Central Depository and Central Registry of Securities (CDCR), for investors who have appointed a participant to hold their securities.

The CSE stressed that listed companies are responsible for issuing and sending dividend cheques, using investor details held in the exchange’s central depository and registry.

The companies are also responsible for reissuing cheques that have been lost or otherwise require replacement.

The exchange does not issue dividend cheques and is not involved in how credit institutions deposit or cash them.

The CSE is responsible for maintaining the Central Depository and Central Registry of Securities, including the details of investor accounts holding securities listed on the exchange.

Investors can change certain personal details, such as their address, through a CDCR participant if they have appointed one.

However, changes to an investor’s name or identification number, such as that on an identity card or passport, can only be made by the CSE.

Such changes require submission of form 6, “Application for Change of Investor Account and Securities Account Details”, together with supporting documents for the exchange to examine and assess.

The CSE also handles the transfer of securities belonging to deceased investors, under specific procedures and with the required forms and supporting documentation.

These are available on its website under Investor Services, in the section concerning the transfer of securities through inheritance.

The exchange said all its forms and procedures, as well as those relating to the central depository and registry, were available online and encouraged investors to consult the website for up-to-date information.

It also clarified that securities are separate assets from cash distributions such as dividends and interest belonging to a deceased investor.

The procedures governing the handling and transfer of securities after a death are based on applicable legislation, including the law governing the CSE’s central depository and registry, the law on the administration of estates of deceased persons and relevant tax legislation.

The exchange added that each listed company sets its own procedures for paying dividends or interest to a shareholder who has died.

Executors and heirs should therefore contact the relevant company directly to establish the process and identify any information or documents required.

The CSE’s clarification comes as investors seek information about dividend payments following Demetra Holdings’ distribution, with the exchange asking them to allow time for their enquiries to be handled.