On Oct. 7, 2026, IND SEBI introduced the credit risk-o-meter as an additional disclosure mechanism for debt securities.
OBPPs must update the meter within 24 hours of receiving intimation of rating change from IND NSD/IND CDSL and ensure strict prohibition on manual overrides.
Circular inserts provisions into Master Circular for issue and listing of Non-Convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper (see #178169).
Stock exchanges and depositories are directed to, among other things, take all the necessary steps and put in place necessary systems and processes for the implementation of the provisions of the circular.
The provisions will come into force on Nov. 21, 2026.
On Aug. 13, IND SEBI proposed mandatory disclosure for debt securities.
IND SEBI proposed the mandatory adoption of a credit risk-o-meter as an additional disclosure mechanism for debt securities, and drafted circular to introduce the meter.
Aims to provide easy-to-understand visual indicators to help retail investors easily assess, compare, and align investments with their risk appetite.
Follows IND SEBI Jul. 2025 consolidated master circular for credit rating agencies (CRAs), #178323.
Proposal Highlights
IND SEBI proposes to introduce the credit risk-o-meter, a standardized, color-coded visual scale for debt securities depicting the credit risk associated with such securities.
Issuers and online bond platform providers (OBPPs) would be mandated to display credit risk-o-meter as an additional disclosure mechanism in offer document, abridged prospectus, private placement memorandum, advertisements, web/mobile platforms.
The credit risk-o-meter maps IND SEBI's existing credit rating framework, rating symbols (AAA to D) to six levels of risk with colour codes (green to red).
These distinct risk levels are in line with the definitions of the Master circular for CRAs.
The proposed credit risk-o-meter would apply to all issuances of non-convertible securities (NCS), commercial papers (CPs), securitized debt instruments (SDIs), security receipts (SRs), and structured debt / market linked debentures (MLDs),
Additional Disclosures
Issuers/OBPPs would be required to disclose credit risk-o-meter representing only the credit risk associated with the debt security.
Plus the name of the CRA and the actual credit rating of the respective debt security.
IND SEBI proposes the disclosure requirements for unsecured debt instruments, unsecured perpetual bonds (such as AT1 bonds), and a disclaimer.
Consultation End
Public consultation closes on Sep. 3, 2026.
Oct. 2026 Credit Risk-o-Meter Introduced
On Oct. 7, 2026, IND SEBI introduced the credit risk-o-meter as an additional disclosure mechanism for debt securities.
OBPPs must update the meter within 24 hours of receiving intimation of rating change from IND NSD/IND CDSL and ensure strict prohibition on manual overrides.
Circular inserts provisions into Master Circular for issue and listing of Non-Convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper (see #178169).
Stock exchanges and depositories are directed to, among other things, take all the necessary steps and put in place necessary systems and processes for the implementation of the provisions of the circular.
The provisions will come into force on Nov. 21, 2026.
