Company can utilise securities premium for which of the following purposes?

Issuing fully paid bonus shares

The correct answer is option 2- Issuing fully paid bonus shares.

Company can utilise securities premium for Issuing fully paid bonus shares.

According to the Companies Act 2013, there are some laws about the utilization of the Securities Premium Account. It states the specific purposes for which this balance may be used. So the account can only be used for such specific purposes and no other purpose. It can be used only for the following five purposes:
(a) to issue fully paid bonus shares to the extent not exceeding unissued share capital of the company;
(b) to write-off preliminary expenses of the company;
(c) to write-off the expenses of, or commission paid, or discount allowed on any securities of the company; and
(d) to pay premium on the redemption of preference shares or debentures of the company.
(e) Purchase of its own shares (i.e., buy back of shares).