Uses of securities premium

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Securities Premium is a requirement under the Companies Act when issuing securities at a price higher than their nominal value. The difference between the nominal value and the offer price is called securities premium. This premium must be recognized and maintained separately by the company. When a company issues securities at a price exceeding the nominal value, it's known as a premium issue, and the Companies Act outlines the necessary requirements for such cases.

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There are seperate issues regarding the same.
bonus issue, redemption of preference share and others.

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