Regulatory Authorities require that the company must maintain the Asset Cover in respect of Debentures issued. Discuss this statement in context of provisions of SEBI (LODR) Regulations 2015.

Regulation 54 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 deals with Asset Cover for Non-convertible Debt securities which provides that the listed entity shall maintain 100% asset cover or asset cover as per the terms of offer document/Information Memorandum and/or Debenture Trust Deed, sufficient to discharge the principal amount at all times for the non-convertible debt securities issued. Such entities are also required to disclose to the stock exchange in quarterly, half-yearly, year-to-date and annual financial statements, as applicable, the extent and nature of security created and maintained with respect to its secured listed Non-convertible Debt securities.