Securities Premium Account can be used only for the following purposes:

(A) To issue partly paid bonus shares to the extent not exceeding unissued share capital of the company;

(B). Buy back of own shares.

(C). To write-off the expenses of, or commission paid, or discount allowed on any securities of the company;

(D). To pay premium on the redemption of preference shares or debentures of the company.

Choose the correct answer from the options given below:

The correct option is (A), (B), (C) and (D).

Detailed Explanation:
The Securities Premium Account is created when a company issues shares at a price higher than their face (par) value. Since this premium represents extra capital collected from investors, corporate law (such as Section 52(2) of the Companies Act) strictly regulates its utilization to prevent misuse. Under these guidelines, the Securities Premium Account can be legally utilized for the following purposes:

1. To issue bonus shares (A):
The company can utilize the securities premium balance to issue unissued shares to its members as bonus shares, thereby capitalizing its reserves.

2. Buy-back of its own shares (B):
The account can be used to fund the purchase or buy-back of the company's own shares or other specified securities under the designated buy-back provisions of corporate law.

3. Writing off issue-related expenses, commissions, or discounts (C):
Any preliminary expenses, underwriting commissions paid, or discounts allowed on the issue of any securities or debentures of the company can be written off using this account.

4. Paying premium on redemption (D):
When redeemable preference shares or debentures are redeemed at a premium, the premium amount payable on such redemption can be drawn from the Securities Premium Account.

Consequently, all the statements (A), (B), (C), and (D) represent valid purposes for the utilization of the Securities Premium Account.