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SECURITIES PREMIUM ACCOUNT CAN BE UTILISED FOR
a) Issuing fully paid bonus shares to the members.
(b) Writing off preliminary expenses.
(c) Writing off the expenses of or the commission paid or discount allowed on any issue of shares or debentures of the company.
(d) Providing for the premium payable on the redemption of preference shares or debentures of the company.
(e) In purchasing its own shares i.e. Buy Back u/s 77 A
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Yes,
Securities premium can be used for payment of dividend as it's a free reserve
Hello,
Security premium **Realised in Cash** can be used for distributing dividend to shareholder.
Thanks & Regards,
Purvi Vasa
Hello,
The Securities Premium can be used only for the purpose as mention in the Companies Act, 2013 and no other ways is allowed