What are the restrictions on use of Securities Premium Account as per provisions of the Companies Act, 2013? What is the implication if a company violates these provisions?

As per the provisions of the Companies Act, 2013, amount of premium received on issue of shares is a capital receipt and is to be transferred to a separate account called "Securities Premium Account". According to the Companies Act, 2013, "Securities Premium Account" can be used only for the following purposes: Towards the issue of unissued shares to the members of the company as fully paid bonus shares. In writing-off the preliminary expenses of the company. In writing-off the expenses of or the commission paid or discount allowed on any issue of shares or debentures of the company. In providing for any premium payable on redemption of any redeemable preference shares or any debentures of the company. For purchase of its own shares or other securities under Section 68. Implication of Violation: If the company contravenes the above provisions and utilizes the amount of securities premium except for the modes specified above, it will attract the provisions relating to reduction of share capital of a company under Section 66 of the Companies Act, 2013.