SEBI circular HO/17/11/22(1)2026-DDHS-POD1 · 07 Oct 2026
Official title
Introduction of Credit Risk-o-Meter as an additional disclosure mechanism for debt securities
Summary
Check the official recordThe Securities and Exchange Board of India introduces a mandatory Credit Risk-o-Meter as a visual disclosure mechanism for debt securities. Issuers and Online Bond Platform Providers must display this color-coded meter in offer documents, prospectuses, private placement memorandums, advertisements, and digital platforms. The meter maps credit ratings to six risk levels using specific color codes. If a security holds multiple ratings, the meter must reflect the lowest rating. Online Bond Platform Providers must update the meter within 24 hours of receiving rating changes from depositories and maintain audit trails. The provisions apply to listed and proposed debt securities, including non-convertible securities, commercial papers, and securitized debt instruments. These requirements take effect 45 days from the date of issuance.
What you must do
Key dates
Who is affected
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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
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
The detailed framework for disclosure of Credit Risk-o-Meter is enclosed at Annexure-A.
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.
All other provisions of the NCS Master Circular shall remain unchanged.
The provisions of circular shall come into force after 45 days from the date of issuance.
The Stock Exchanges and Depositories are directed to:
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.
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
Annexure -A
Disclosure of ‘Credit Risk-o-Meter’ in respect of Debt Securities
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.
Framework for disclosure of Credit Risk-o-Meter
2.1. Credit Risk-o-Meter shall be disclosed in:
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.
| Risk-o-Meter Level (CRA) | Credit Rating Range | Short term Rating symbols | Color Designation | HTML Color Code |
|---|---|---|---|---|
| Lowest credit risk | AAA | A1+ | Irish Green | #08A04B |
| Very low credit risk | AA+, AA, AA- | A1 | Chartreuse | #7FFF00 |
| Low credit risk | A+, A, A- | A2 | Neon Yellow | #FFFF33 |
| Moderate credit risk | BBB+, BBB, BBB- | A3 | Caramel | #C68E17 |
| Moderate risk of default | BB+, BB, BB- | A4+ | Dark Orange | #FF8C00 |
| High to Very high risk of Default | B+, B, B-, C+, C, C-, D | A4,D | Red | #F70D1A |
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:
2.7. 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
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(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:
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(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.
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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."
2.12. Additional requirements for OBPPs:
