Securities Premium cannot be used :

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

Securities premium is a capital receipt. Section 52 of the Companies Act, 2013 allows it to be used only for a few capital purposes; dividend is paid out of profits, so the premium can never be used to pay it.

Option (1) to issue fully paid bonus shares — A permitted use. Bonus shares may be issued out of securities premium.

Option (2) to write-off preliminary expenses of the company. — A permitted use. Preliminary expenses may be written off against it.

Option (3) to pay premium on the redemption of preference shares or debentures of the company. — A permitted use. The premium payable on redemption may be provided out of it.