New Credit Risk-o-Meter for Debt Securities
SEBI now requires a color-coded 'Credit Risk-o-Meter' on all debt security marketing and offer documents to help investors visualize risk.
- Document
- Circulars
- Dated
- 07 Oct 2026
- Effective
- 21 November 2026
- Act by
- 21 November 2026
This page was written by Patron Accounting’s AI from the official release and reviewed before publishing. It explains the document in plain language. It is not the document itself. Where this page and the original differ, the original governs.
The short version
- Issuers must display a color-coded risk meter on all offering documents and advertisements.
- Online bond platforms must update their websites and apps with this visual meter.
- The meter maps credit ratings to six risk levels using specific colors.
- Mandatory disclaimers must appear alongside the meter to clarify it is not advice.
In short
This SEBI circular introduces a mandatory 'Credit Risk-o-Meter' to help investors quickly understand the credit risk of debt securities through color-coded visuals.
What has changed
How it worked before
There was no requirement to display a standardized, color-coded risk meter in offer documents or on online bond platforms.
What has changed
Issuers and online platforms must now include a specific visual meter that maps credit ratings to risk levels, along with required text disclosures and disclaimers.
Who this affects
Companies issuing debt securities and online bond platform providers (OBPPs).
An example
A company issuing non-convertible debentures must now include the Credit Risk-o-Meter in their private placement memorandum. If their credit rating is 'A', they must display the 'Low credit risk' meter in neon yellow. They must also add the mandatory disclaimer stating this is not investment advice.
What you should do
Update all offer documents, prospectuses, websites, mobile apps, and advertising templates to include the new Credit Risk-o-Meter and required disclaimers by the deadline.
Deadline · 21 November 2026If you do nothing
Failure to comply may lead to regulatory action by SEBI, as this is now a mandatory disclosure requirement for all listed and proposed debt securities.
The terms explained
- Credit Risk-o-Meter
- A color-coded visual tool that shows how risky a debt investment is based on its credit rating.
- Online Bond Platform Providers (OBPPs)
- Digital platforms where you can buy and sell bonds and other debt securities.
- Credit Rating Agency (CRA)
- An organization that evaluates the financial strength of a company and assigns a rating to its debt.
The original document
| Issued by | SEBI |
|---|---|
| Document | Circulars |
| Full title | Introduction of Credit Risk-o-Meter as an additional disclosure mechanism for debt securities |
| Issued on | 07 October 2026 |
| Effective | 21 November 2026 |
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