Navni Ltd. has accumulated a significant amount in its securities premium account. The company is considering different ways to utilize these funds.…

Application of Premium received on Issue of Shares The provisions of the Companies Act, 2013, allow the companies to apply securities premium account for: Issue of fully paid bonus shares;Writing off the preliminary expenses;Writing off the issue expenses (expenses including commission paid or discount allowed on any issue of shares or debentures);Premium payable on the redemption (of any preference shares or of any debentures); orBuy-back (purchase of its own shares or other securities under section 68).