Whether you are eligible for a corporate action if you purchase shares
using debit (funding) depends on the specific corporate action and the terms
associated with it. In many cases, eligibility for corporate actions is
determined based on the ownership of shares as of a particular record date.
Following are the measures-
Dividends: If you purchase shares on debit before the ex-dividend date, you are
typically eligible to receive dividends. The ex-dividend date is usually set a
few days before the record date. The dividends are processed directly into your
bank account registered.
Bonus and Split Issues: For bonus and split issues, eligibility is often
determined based on the ownership of shares as of the record date. If you own
the shares on the record date i.e. you have converted your MTF Funded Stocks
into Delivery Stocks, you're usually eligible for the bonus and split shares.
Rights Issues: MTF or debit funded Stocks are required to be converted into
delivery as on the record date for rights issue. To participate in a rights
issue, you need to first unpledge the shares and have them in your demat
account as on the record date.
Buybacks: Buybacks are generally not applicable to shares held under a Margin
Trading Facility (MTF) or debit funding account, as they are pledged to the
broker as collateral. To participate in a buyback, you need to first unpledge
the shares and have them in your demat account as on the record date.