SEBI’s 7 October circular makes a Credit Risk-o-Meter part of specified debt disclosures and online bond-platform interfaces. Paragraph 5 sets commencement after 45 days from issuance. Counting 45 calendar days from 7 October gives 21 November; the circular itself expresses the requirement as an interval.[1]
Prescribed rating bands
| Risk label | Long-term ratings | Short-term ratings | Colour |
|---|---|---|---|
| Lowest credit risk | AAA | A1+ | Irish greenSource 1 |
| Very low credit risk | AA+, AA, AA− | A1 | ChartreuseSource 1 |
| Low credit risk | A+, A, A− | A2 | Neon yellowSource 1 |
| Moderate credit risk | BBB+, BBB, BBB− | A3 | CaramelSource 1 |
| Moderate risk of default | BB+, BB, BB− | A4+ | Dark orangeSource 1 |
| High to very high risk of default | B+, B, B−, C+, C, C−, D | A4, D | RedSource 1 |
Where several agencies rate a security, the meter must reflect the lowest rating. The agency name and actual rating must appear in text; unsecured instruments must be marked accordingly. Non-cooperation status requires the designated display, and unsecured perpetual instruments need a separate structural-risk warning.[1]
The interface is part of the obligation
Online bond platforms must display the meter before investment action buttons, automate updates within 24 hours of receiving rating-change intimation from NSDL or CDSL, prevent manual overrides and retain an audit trail. The underlying ratings must come from SEBI-registered credit-rating agencies.[1]
The mechanism can improve comparability only if the underlying instrument and rating date match the displayed security. An attractive colour is not evidence of a liquid secondary market, a suitable maturity or protection from changes in interest rates. A rating also does not remove structural features that can affect loss severity.
The circular is final, while its implementation period was still running at this review date. The distinction matters for an audit of a platform: a design requirement, its commencement and the trigger for a later rating update are three different clocks.
Sources & further reading
- Introduction of Credit Risk-o-Meter as an additional disclosure mechanism for debt securities Securities and Exchange Board of India · 7 Oct 2026 · Accessed 27 Oct 2026
- Official Credit Risk-o-Meter circular page Securities and Exchange Board of India · 7 Oct 2026 · Accessed 27 Oct 2026