The amount of Securities Premium can be used only for the following purposes:

(A) To write off preliminary expenses.

(B) To make partly paid shares as fully paid up.

(C) To issue fully paid bonus shares.

(D) Purchase of its own shares.

Choose the correct answer from the options given below:

As per Section 52 of the Companies Act, 2013, Securities Premium can be utilized only for specific purposes.

Analyzing each statement:

(A) To write off preliminary expenses ✓

Securities Premium can be used to write off preliminary expenses incurred in the formation of the company.

(B) To make partly paid shares as fully paid up ✗

Securities Premium cannot be used to convert partly paid shares into fully paid shares. This would amount to distribution of reserves to shareholders, which is not permitted under the Act.

(C) To issue fully paid bonus shares ✓

The premium account can be utilized for issuing fully paid bonus shares to existing members of the company.

(D) Purchase of its own shares ✓

Securities Premium can be applied towards buy-back of the company's own shares as per the provisions of the Companies Act.

The permitted uses of Securities Premium are limited and specified by law. Statement (B) is incorrect because making partly paid shares fully paid would essentially mean paying shareholders from reserves, which contradicts the nature of share capital. The premium collected is a capital reserve and must be used only for capital purposes as defined in the Act.

Therefore, statements (A), (C) and (D) only represent the correct purposes.

Correct Option: 2