Sebi clarifies asset cover norms for debt securities

In a move to bring more clarity on asset cover norms for debt securities, the Securities and Exchange Board of India (Sebi) today said that regulated finance companies no longer needed to show 100 per cent cover while selling unsecured debt instruments to raise capital.

Sebi had said in November that issuers of listed debt securities should maintain 100 per cent asset cover sufficient to discharge the principal amount at all times.