The proposal seeks to translate existing alphanumeric credit ratings such as AAA, AA+ and BBB- into a standardised, colour-coded visual scale.
SEBI said the tool is intended to simplify risk evaluation, enable investors to compare debt securities and align investments with their risk appetite.
Under the proposed framework, the Credit Risk-o-Meter will map credit ratings into six risk levels — lowest credit risk, very low credit risk, low credit risk, moderate credit risk, moderate risk of default, and high to very high risk of default.
The corresponding colours range from Irish Green for AAA-rated securities to Red for ratings from B+ to D. AA+, AA and AA- will be represented by Chartreuse, while A+, A and A- will carry a Neon Yellow designation. BBB+, BBB and BBB- will be represented by Caramel, while BB+, BB and BB- will be shown in Dark Orange.
| Credit Rating Range | Risk-o-Meter Level | Colour Designation | HTML Colour Code |
|---|---|---|---|
| AAA | Lowest credit risk | Irish Green | #08A04B |
| AA+, AA, AA- | Very low credit risk | Chartreuse | #7FFF00 |
| A+, A, A- | Low credit risk | Neon Yellow | #FFFF33 |
| BBB+, BBB, BBB- | Moderate credit risk | Caramel | #C68E17 |
| BB+, BB, BB- | Moderate risk of default | Dark Orange | #FF8C00 |
| B+, B, B-, C+, C, C-, D | High to very high risk of default | Red | #F70D1A |
SEBI has proposed that issuers and Online Bond Platform Providers (OBPPs) display the Credit Risk-o-Meter in offer documents, abridged prospectuses, private placement memorandums, all advertisements of issuers and OBPPs, and on the web and mobile platforms of OBPPs.
For web and mobile interfaces, SEBI has proposed an appropriate visual format, with the mobile version suitably optimised or condensed to display the entire risk spectrum and an arrow pointing to the risk level associated with the debt security.
The regulator has also proposed additional disclosures alongside the Credit Risk-o-Meter.
Issuers and OBPPs will have to clearly state that the meter represents only the credit risk associated with the debt security. The name of the credit rating agency and the actual credit rating will have to be disclosed immediately below the meter.
Where a debt security carries ratings from multiple credit rating agencies, the Credit Risk-o-Meter will be based on the lowest rating, while all ratings will have to be disclosed alongside it.
For unsecured debt instruments, issuers and OBPPs will have to prominently disclose the unsecured nature in bold red text below the Credit Risk-o-Meter. OBPPs will also have to immediately communicate any change in the Credit Risk-o-Meter on their platforms.
SEBI has proposed specific disclaimers stating that the Credit Risk-o-Meter is not investment advice or a recommendation to invest and that debt securities remain subject to market and liquidity risks.
A separate disclaimer has also been proposed for unsecured perpetual bonds such as AT1 bonds, highlighting their unique structural risks and the possibility of total loss of invested capital.
SEBI has invited comments, suggestions and views from the public on the consultation paper. Feedback can be submitted latest by September 3, 2026.
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