What happens if the securities that I have sold have corporate actions such as dividend distributions, bonus issues or rights issues?

The borrower will have to protect the lender from any loss of such entitlement. Therefore, if you have sold securities which have impending corporate action entitlements, you can either choose to leave the short position open and compensate the lender for such loss of entitlement or buy back the securities and return to the lender before the ex-date of the entitlement.

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