What is the qualifying criteria for Right Issue ?

What is the qualifying criteria for Right Issue ?

The rights issue is not open for the general public but only to existing shareholders of the company. A company announces a record date in case of a rights issue. To be eligible to qualify as an existing shareholder for the rights issue, one must own the shares of the company as on the record date.
The shares become ex-rights one day before the record date. If you buy the shares on or after the ex-date, you will not be eligible to receive rights entitlements as you would not qualify as an existing shareholder of the company as on record date.

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