law: Companies Act, 2013 
  52.
  
   Application
  
  of premiums received on issue of shares.
  1.      Where a company
  
  issues shares at a premium, whether for cash or otherwise, a sum equal to the
  
  aggregate amount of the premium received on those shares shall be transferred
  
  to a “securities premium account” and the provisions of this Act relating to
  
  reduction of share capital of a company shall, except as provided in this
  
  section, apply as if the securities premium account were the paid-up share
  
  capital of the company.
  2.      Notwithstanding
  
  anything contained in sub-section (1 ), the securities premium account
  
  may be applied by the company—
  a.     
  
    towards
  
  the issue of unissued shares of the company to the members of the company as
  
  fully paid bonus shares;
  b.    
  
    in
  
  writing off the preliminary expenses of the company;
  c.     
  
    in
  
  writing off the expenses of, or the commission paid or discount allowed on, any
  
  issue of shares or debentures of the company;
  d.    
  
    in
  
  providing for the premium payable on the redemption of any redeemable
  
  preference shares or of any debentures of the company; or
  e.     
  
    for
  
  the purchase of its own shares or other securities under section 68.
  1.     
  2.     
  3.      The securities
  
  premium account may, notwithstanding anything contained in sub-sections (1 )
  
  and (2 ), be applied by such class of companies, as may be prescribed and
  
  whose financial statement comply with the accounting standards prescribed for
  
  such class of companies under section 133,—
  a.     
  
    in
  
  paying up unissued equity shares of the company to be issued to members of the
  
  company as fully paid bonus shares; or
  b.    
  
    in
  
  writing off the expenses of or the commission paid or discount allowed on any
  
  issue of equity shares of the company; or
  c.     
  
    for
  
  the purchase of its own shares or other securities under section 68.