The Securities and Exchange Board of India (SEBI) has introduced a ‘Credit Risk-o-Meter’ as a mandatory disclosure mechanism to help investors assess the credit risk of debt securities before investing. The colour-coded risk indicator will have to be displayed in offer documents, abridged prospectuses, private placement memorandums and advertisements issued by issuers and online bond platform providers (OBPPs). It will also be required on OBPP web and mobile platforms.
SEBI said the measure aims to provide investors with a clear visual representation of credit risk and support informed investment decisions.
The new provisions will come into effect 45 days from the date of the circular. Stock exchanges and depositories have been directed to put in place the necessary systems and processes for implementation.
Must Read
- Advertisement -
