Tushar Mittal (student) (73 Points)
05 April 2018
CA Stalin
(CA in Full time practice)
(232 Points)
Replied 25 June 2019
According to Section 52(2) of the Companies Act, 2013 following is the use of securities premium account.
(a) towards the issue of unissued shares of the company to the members of the company as fully paid bonus shares;
(b) in writing off the preliminary expenses of the company;
(c) in writing off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company;
(d) in providing for the premium payable on the redemption of any redeemable preference shares or of any debentures of the company; or
(e) for the purchase of its own shares or other securities under section 68
As per section 53 read with section 54, sweat equity shares can be issued at discount and such discount can be adjusted as provided under section 52(2)(c) of the Companies Act, 2013
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