Comment on the following: Amount lying in the securities premium account belongs to the shareholders and can be used freely for their benefit.

In accordance with the provisions of Section 52(2) of the Companies Act, 2013, the securities premium can be utilised only: towards the issue of unissued shares of the company 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 the premium payable on the redemption of any redeemable preference shares or of any debentures of the company; or for the purchase of its own shares or other securities under Section 68 of the Companies Act, 2013. Accordingly, the amount available in the securities premium is restrictive in nature and can only be used for specified purposes.