Securities premium cannot be used:

The correct answer is Option (4) → To pay dividend to the shareholder of company

Securities premium is a capital receipt, so it may be used only for the purposes the law allows. Paying dividend is a distribution of profit and is not one of them.

Option (1) For issuing fully paid Bonus shares — A permitted use. Bonus shares may be issued out of it.

Option (2) To write-off preliminary expenses of the company — A permitted use. It is one of the five listed purposes.

Option (3) To pay premium on redemption of shares or debentures of company — A permitted use. The premium payable on redemption may be met from it.