SEBI mandates uniform risk disclosure via Credit Risk-o-Meter in offer documents, ads, and online platforms for all debt securities after a 45-day transition.
Standardised Risk Disclosure for Debt Instruments
SEBI has mandated the use of the 'Credit Risk-o-Meter' (CRM) for all debt securities, requiring its inclusion in offer documents, advertisements, and online bond platform (OBPP) interfaces. The directive takes effect 45 days post-notification to allow market participants time to implement.
The CRM provides a visual and qualitative assessment of credit risk, aiding retail investors in comparing debt products. The regulator aims to improve financial literacy and reduce information asymmetry in the fixed-income market, which has seen rising retail inflows.
Legal and compliance teams must ensure all public and private debt issuance materials incorporate the CRM. Failure to disclose may attract enforcement action under mis-selling norms, making this a critical compliance checkpoint.
Citations
- SEBI Circular on Credit Risk-o-Meter, 2026
