The balance in the securities premium account can not be used ______?

To pay off the purchase consideration.

The correct answer is Option (3) → To pay off the purchase consideration.

The Companies Act (specifically Section 52 of the Companies Act, 2013, in India) strictly restricts the usage of the Securities Premium Account. It can only be used for the following five purposes:

1. To issue fully paid bonus shares to members. 

2. To write off preliminary expenses of the company. 

3. To write off the expenses, commission paid, or discount allowed on the issue of shares or debentures. 

4. To provide for the premium payable on the redemption of preference shares or debentures.

5. For the buy-back of its own shares.

The premium amount cannot be used to pay off the purchase consideration for the acquisition of assets or a business (which is typically settled using cash, shares, or debentures).