Explanation:

Issue of Shares at Premium: When shares are issued at a price higher than the face value then it is called as the issue of shares at premium. The excess of issue price over the face value is the amount of premium. 

there is no restriction whatever on the sale of shares at a premium in Companies Act which is silent about the same and only lays down the restrictions regulating the issue of shares by a Company at premium.As per SEBI guidelines, an issuer can issue shares at any price. However, offer document should indicate justification for the price. Thus, issuer can’t issue share at a price that the market can’t bear. In case of private issue, SEBI guidelines do not apply. Shares at a Premium may be received in cash or in kind. Where the value of the assets received by a company as a consideration for allotment is greater than the nominal value of shares, it is, in essence, an allotment at a premium. So a company may issue securities at a premium when it is able to sell them at a price above par or above value,