Shivam RC (Student) 27 March 2019
As per the Provision of Section 63 of the Companies Act 2013 :
A company may issue fully paid-up bonus shares to its members out of
[i] its free reserves;
[ii] the securities premium account; or
[iii] the capital redemption reserve account:
Provided that no issue of bonus shares shall be made by capitalising reserves created by the revaluation of assets ( Revaluation Reserve ).
Hence, Capital Reserve cannot be utilised for issuing fully paid up Bonus Shares.