Assertion (A): Securities Premium may be used for issue of partly-paid bonus shares. Reason (R): Securities Premium may be used for issue of partly-paid or fully paid bonus shares. In the context of the above two statements, which of the following is correct?

Question

KollegeApply · Accepted Answer

Both (A) and (R) are wrong. Explanation: Assertion (A) is false, Securities Premium cannot be used to issue partly-paid bonus shares; it can only be used for fully paid bonus shares. Reason (R) is also false, It incorrectly states that Securities Premium can be used for partly-paid shares, which is not allowed under law.

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