Sebi introduces credit risk-o-meter as an additional disclosure mechanism for debt securities

Markets regulator Sebi introduced a mandatory colour-coded credit risk-o-meter for debt securities to help investors assess credit risk before investing. The credit risk-o-meter will be required in offer documents, abridged prospectus, private placement memorandum, advertisements of issuers and Online Bond Platform Providers (OBPPs) and web and mobile platforms of OBPPs, Sebi said in a circular. The framework will apply to all listed and proposed to be listed non-convertible securities, commercial papers, securitised debt instruments, security receipts, and structured debt/market-linked debentures, whether issued by way of public issue or private placement.

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