Securities Premium Account can be used against ?
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To issue fully paid-up bonus shares to its existing shareholders. However, you cannot exceed the limit of the unissued share capital of the company.
Securities Premium Account can be used for writing off any preliminary expenses of the company.
To write off expenses of issue of shares and debentures, such as commission paid or discount given on the issue of shares.
The balance can also be used to provide for the premium that is payable on the redemption of debentures or of preference shares of the company.
And finally, it can be utilized by the company to buy back its own shares.
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