There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Securities Premium Reserve can be used for the issue of Partly Paid Bonus Shares.
Reason (R): The Companies Act, 2013 prescribes that Securities Premium Reserve Account can be used for issue of Fully paid-up or partly paid-up Bonus Shares.

Both Assertion (A) and Reason (R) are not correct.

Securities premium 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.
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).