Summary: SEBI has introduced a mandatory “Credit Risk-o-Meter” as an additional disclosure mechanism for debt securities to help investors assess credit risk through colour-coded visualisation before investing. Under Circular No. HO/17/11/22(1)2026-DDHS-POD1 dated October 07, 2026, the Credit Risk-o-Meter will be required in offer documents, abridged prospectuses, private placement memorandums, all advertisements of issuers and Online Bond Platform Providers (OBPPs), and the web and mobile platforms of OBPPs. The detailed disclosure framework is contained in Annexure-A. To implement the framework, SEBI has directed insertion of a new Chapter II-C titled “Disclosure of Credit Risk-o-Meter for debt securities” in the NCS Master Circular dated October 15, 2025. Clause 14 will also be inserted in Annexure-XXIB under Chapter XXI, making the Credit Risk-o-Meter part of the minimum disclosure requirements for each security offered on an Online Bond Platform. All other provisions of the NCS Master Circular will remain unchanged. The new requirements will come into force after 45 days from issuance of the circular. Stock Exchanges and Depositories have been directed to establish the necessary systems and processes, make consequential amendments to relevant bye-laws, rules and regulations wherever applicable, and communicate the requirements to existing and prospective issuers of debt securities. SEBI has issued the circular in exercise of powers under Section 11(1) of the SEBI Act, 1992 read with Regulation 55(1) of the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021.
Securities and Exchange Board of India
Circular No. HO/17/11/22(1)2026-DDHS-POD1 | Dated: 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 → Circulars”.
Yours faithfully,
Rohit Dubey
General Manager
Department of Debt and Hybrid Securities
+91-022 2644 9510
[email protected]
