Question:
As per the provisions of Companies Act, 2013 Securities Premium cannot be utilized for:
As per the provisions of Companies Act, 2013 Securities Premium cannot be utilized for:
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Always refer to Section 52 of the Companies Act, 2013 for permissible uses of the Securities Premium Account.
Updated On: June 02, 2025
- buy back of shares
- issue of partly paid bonus shares
- writing off discount on issue of debentures
- writing off preliminary expenses
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The Correct Option is B
Solution and Explanation
According to the Companies Act, 2013, the Securities Premium Account can be utilized for:
1. Writing off preliminary expenses.
2. Writing off discount on the issue of shares or debentures.
3. Issuing fully paid bonus shares to shareholders.
4. Buyback of shares.
The Securities Premium Account cannot be used for issuing partly paid bonus shares.
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