Will I be eligible for corporate action if I purchase shares on debit?

Will I be eligible for corporate action if I purchase shares on debit?

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.

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, regardless of how you acquired them (cash or debit), you're usually eligible for the bonus and split shares.

Rights Issues: Similar to bonus issues, eligibility for rights issues is typically based on the ownership of shares as of the record date. If you hold the shares on the record date, you can participate in the rights issue.

Buybacks: In the event that you acquire shares on debit prior to the ex-dividend date, the qualifications for participating in a share buyback can differ. Certain buybacks may encompass distinct prerequisites related to the duration of ownership, while others might revolve around the ownership of shares as of a stipulated record date. It's important to note that for a tender buyback, settling any outstanding debit is a prerequisite before you can proceed to apply for it.