The amount of Securities Premium can be used only for the following purposes:

(A) To write off preliminary expenses.
(B) To make partly paid shares as fully paid up.
(C) To issue fully paid bonus shares.
(D) Purchase of its own shares.

Choose the correct answer from the options given below:

(A), (C) and (D) only

The correct answer is Option (2) → (A), (C) and (D) only

The uses of the amount in the Securities Premium Account are strictly governed by the relevant Company Law (Section 52 of the Companies Act, 2013 in India). The permissible uses are:

• (A) To write off preliminary expenses: Correct. This is an explicitly permitted use.

• (B) To make partly paid shares as fully paid up (by transferring the premium to the share capital account): Incorrect. The premium amount is specifically allowed to be used for the issue of fully paid bonus shares (capitalizing the reserve), but not for making partly paid shares fully paid up. 

• (C) To issue fully paid bonus shares: Correct. This is an explicitly permitted use (to pay up unissued shares of the company to be issued as fully paid bonus shares).

• (D) Purchase of its own shares (Buyback): Correct. This is an explicitly permitted use for buyback of shares or other securities.