BMC Associates says Replied on 5th September,2026 06:09 AM

Security premium generally means the amount charged over and above the face value (nominal value) of a security, such as shares or debentures. For example, if a company issues a share with a face value of ₹10 at an issue price of ₹15, then: Face value = ₹10 Issue price = ₹15 Securities premium = ₹15 − ₹10 = ₹5 per share If 10,000 shares are issued, total securities premium would be ₹50,000. In company accounting, the amount received as securities premium is credited to the Securities Premium Account and its utilization is subject to the restrictions prescribed under Section 52 of the Companies Act, 2013. For guidance on company law, share capital, and accounting treatment, businesses can consult experienced chartered accountant firms in gurgaon, a qualified chartered accountant gurgaon, a reliable ca firm in gurgaon, or a professional ca in gurgaon.