# Section 52 — Securities Premium Account
## (1) Creation
When a company issues shares at a premium, it must transfer the premium amount to a separate account called the Securities Premium Account (SPA).
## (2) Permitted Uses of SPA (Mnemonic: B-PER-B)
| Use | Description |
|---|---|
| B — Bonus | Issue of fully paid-up bonus shares |
| P — Preliminary | Write off preliminary expenses of the company |
| E — Expense | Write off expenses or commission on issue of shares or debentures |
| R — Redemption | Provide for premium on redemption of preference shares or debentures |
| B — Buyback | Purchase its own shares (buyback) under Section 68 |
## (3) Restricted Use for Certain Companies
For a prescribed class of companies that comply with Accounting Standards under Section 133 (Ind AS), SPA can be used only for:
- (a) Bonus shares
- (b) Preliminary expenses (write-off)
- (c) Expense/commission on issue (write-off)
- (d) Premium on redemption
- (e) Buyback
(For Ind AS companies — the same list applies but the section restricts free use.)