Securities Premium can not be applied in which of the following cases?

The correct answer is option 1- For paying dividend to members.

Securities Premium can not be applied For paying dividend to members.

Share 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; 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).