The Securities and Exchange Board of India (SEBI) on October 07, 2026, issued a circular regarding the introduction of Credit Risk-o-Meter for Debt Securities.
The following has been stated: -
•SEBI has introduced a Credit Risk-o-Meter as a mandatory colour-coded disclosure mechanism to help investors assess credit risk before investing in debt securities.
•The Credit Risk-o-Meter shall be disclosed in offer documents, abridged prospectuses, private placement memorandums, issuer/OBPP advertisements, and OBPP web/mobile platforms.
•A new Chapter II-C and Clause 14 under Annexure-XXIB of the NCS Master Circular have been introduced to incorporate the disclosure requirements.
•The provisions shall come into force 45 days from the date of issuance of the circular, with stock exchanges and depositories required to implement necessary systems and processes.
[Circular No.: HO/17/11/22(1)2026-DDHS-POD1]