Subject, say, covered by story (5)
I believe the answer is:
liege
'subject' is the definition.
(I've seen this in another clue)
'say covered by story' is the wordplay.
'say' becomes 'eg' (both can mean 'for example').
'covered by' means one lot of letters goes inside another.
'story' becomes 'lie' (story can mean a fabrication).
'eg' put inside 'lie' is 'LIEGE'.
(Other definitions for liege that I've seen before include "European province" , "old lord" , "Loyal vassal" , "Belgian, French-speaking city" , "European university" .)