Introduction of Credit Risk-o-Meter for Debt Securities · NSE/COMP/76794

National Stock Exchange of India

Circular

Department: Compliance

| Download Ref No: NSE/COMP/76794 | Date: October 08, 2026 | | Circular Ref. No: 91/2026 | |

To All Members,

Sub: Introduction of Credit Risk-o-Meter as an additional disclosure mechanism for debt securities

This is with reference to SEBI Circular No. HO/17/11/22(1)2026-DDHS-POD1 dated October 07, 2026, regarding the captioned subject. The circular is attached as Annexure.

Trading Members are requested to take note of the same and ensure compliance.

For any support, please reach out to the helpdesk on 1800 266 0050 (Select IVR option 3) or email at memcompliance_support@nse.co.in

For and on behalf of
National Stock Exchange of India Limited

Sonal Sharma
Senior Manager

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Annexure

CIRCULAR

HO/17/11/22(1)2026-DDHS-POD1
October 07, 2026

To,
Issuers of debt securities;
Entities operating as Online Bond Platform Providers (OBPPs);
All Recognised Stock Exchanges;
All Depositories

Madam/ Sir,

Subject: Introduction of Credit Risk-o-Meter as an additional disclosure mechanism for debt securities

1. To assist investors in assessing credit risk through colour-coded visualization prior to investing, it has been decided to introduce a ‘Credit Risk-o-Meter’ as a mandatory component of the following:

• 1.1. Offer document
• 1.2. Abridged Prospectus
• 1.3. Private Placement Memorandum
• 1.4. All advertisements of Issuer/OBPPs
• 1.5. Web and mobile platforms of OBPPs

2. The detailed framework for disclosure of Credit Risk-o-Meter is enclosed at Annexure-A.

3. To give effect to the above,

• (a) A new Chapter II-C, titled “Disclosure of Credit Risk-o-Meter for debt securities” shall be inserted in the Master Circular for issue and listing of Non-Convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper (“NCS Master Circular”) dated October 15, 2025.
• (b) Clause 14 shall be inserted in Annexure-XXIB under Chapter XXI of NCS Master circular dated October 15, 2025, as shown below:

Minimum Disclosure Requirements (as applicable) for each security offered on the Online Bond Platform:

1. Name of the Issuer, Security Name and ISIN
..
.
14. Credit Risk-o-Meter in the format specified in Annexure-A to this circular.

4. All other provisions of the NCS Master Circular shall remain unchanged.

5. The provisions of circular shall come into force after 45 days from the date of issuance.

6. The Stock Exchanges and Depositories are directed to:

• a. take all the necessary steps and put in place necessary systems and processes for the implementation of the above provisions of the circular;
• b. make necessary amendments to the relevant bye-laws, rules and regulations, wherever applicable, for the implementation of the above provisions of the circular; and
• c. bring the provisions of this circular to the notice of the existing and prospective issuers of debt securities and also disseminate the same on their website

7. The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 55 (1) of the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.

8. This Circular is available at www.sebi.gov.in under the link “Legal $\rightarrow$ Circulars”.

Yours faithfully,

Rohit Dubey
General Manager
Department of Debt and Hybrid Securities
+91-022 2644 9510
rohitd@sebi.gov.in

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Annexure -A

Disclosure of ‘Credit Risk-o-Meter’ in respect of Debt Securities

1. Applicability: The provisions of this chapter shall apply to all listed and proposed to be listed issuances of Non-Convertible Securities (NCS), Commercial Papers (CPs), Securitised Debt Instruments (SDIs), Security Receipts (SRs), and Structured Debt / Market Linked Debentures (MLDs), whether issued by way of public issue or private placement.

2. Framework for disclosure of Credit Risk-o-Meter

• 2.1. Credit Risk-o-Meter shall be disclosed in:

  • 2.1.1. Offer document
  • 2.1.2. Abridged Prospectus
  • 2.1.3. Private Placement Memorandum
  • 2.1.4. All advertisements of Issuer/OBPPs
  • 2.1.5. Web and mobile platforms of OBPPs

• 2.2. Issuers/OBPPs shall display the credit risk of debt security in pictorial meter named "Credit risk-o-meter " and this meter shall appropriately depict the level of credit risk in any specific debt security.

• 2.3. Issuers/OBPPs shall clearly indicate that it represents only the credit risk associated with the debt security.

• 2.4. The Credit Risk-o-meter shall map SEBI's existing credit rating standardization framework, rating symbols (AAA to D) to following six levels of risk with corresponding colour codes in following manner:

  Credit Risk-o-Meter Mapping based with Color Code mentioned in following tabular format.

• 2.5. The above given colour scheme of credit risk-o-meter shall be applicable for all digital and polychrome printed promotion materials for particular debt security by Issuers/OBPPs.
• 2.6. The Issuers/OBPPs shall disclose the following in text format below the Credit risk-o-meter:
  • 2.6.1. Name of the credit rating agency (CRA)
  • 2.6.2. Actual credit rating of the respective debt security in text format
  • 2.6.3. For unsecured debt instruments, word “unsecured” shall be mentioned in bold red text
• 2.7. Where a debt security carries ratings from multiple CRAs, the Credit risk-o-meter shall reflect the lowest rating. However, all ratings may be disclosed alongside the Credit risk-o-meter.
• 2.8. Credit risk-o-meter: Credit Risk level of the debt security shall be depicted, as given below

[Image omitted. See the official document.]

• (a) Credit Rating Agency (CRA) – XXXX

• (b) Credit Rating – AAA/AA+/A- (the actual rating given by credit rating agency).

• (c) Type of Instrument: Unsecured

• 2.9. In case of Short Term Debt instruments, the credit risk-o-meter shall be shown as below:

[Image omitted. See the official document.]

• (a) Credit Rating Agency (CRA) – XXXX

• (b) Credit Rating – A1+,A1, A2 (the actual rating given by credit rating agency).

• (c) Type of Instrument: Unsecured

• 2.10. Wherever CRA mentions “Issuer is Not Cooperating” (“INC”), the credit risk-o-meter shall be displayed in following manner in such cases, with arrow directed towards the INC. The INC status shall also be reflected in the textual disclosure below the credit risk-o-meter.

[Image omitted. See the official document.]

• 2.11. Disclaimers:

  • 2.11.1. Issuers/OBPPs shall incorporate the following disclaimer in Offer document, Abridged Prospectus and Private Placement Memorandum below the credit risk-o-meter, and display the same suitably on their web and mobile platform:

    “The Credit risk-o-meter is based on evaluation of the credit risk of the issuer and does not constitute investment advice or a recommendation to invest. Investments in debt securities are also subject to market and liquidity risks.”

  • 2.11.2. In case of unsecured perpetual bonds (such as AT1 bonds), the Issuers/OBPPs shall incorporate the following disclaimer in Offer document, Abridged Prospectus and Private Placement Memorandum below the credit risk-o-meter, and display the same suitably on their web and mobile platform:

    “The Credit Risk-o-Meter is based on evaluation of the credit risk of the issuer and does not reflect the unique structural risks associated with Unsecured Perpetual Bonds (such as AT1 Bonds). These instruments may carry the risk of total loss of invested capital. Investors are advised to read the Information Memorandum/Private placement Memorandum carefully before investing."