Security cover certificate
Also known as: asset cover certificate
Definition
A security cover certificate shows whether the assets securing an issue of debentures are sufficient to cover the amount outstanding. Under SEBI's Master Circular, debenture trustees certify security cover every quarter.
More about Security cover certificate
- Frequency: quarterly, submitted within 75 days from the end of each quarter, or within 90 days for the last quarter of the financial year [1].
- Platform: trustees upload reports and certificates to the depository-hosted Security and Covenant Monitoring System [1].
- Due diligence: a security cover certificate is also among the reports obtained during due diligence before an issue [1].
How this relates to LCode Technologies
LCode Technologies' RTMS provides alerts management for compliance, redemption and interest, and SEBI/RBI reporting for trustee companies.
Frequently asked questions
How often must a debenture trustee certify security cover?
Quarterly, within 75 days of the end of each quarter, or within 90 days for the last quarter of the financial year.
Related reading
Sources
- Master Circular for Debenture Trustees (DTs), SEBI/HO/DDHS-PoD-1/P/CIR/2025/117, August 13, 2025 — Securities and Exchange Board of India