Mumbai, Oct. 8 -- The Securities and Exchange Board of India (SEBI) mandated a colour-coded "Credit Risk-o-Meter" for debt securities on Wednesday, requiring issuers and online bond platforms to prominently display the credit risk of securities to help investors assess risks before investing.

The new disclosure will apply to all listed and proposed-to-be-listed non-convertible securities, commercial papers, securitised debt instruments, security receipts and structured debt or market-linked debentures, whether issued through public issue or private placement.

Under the framework, the Credit Risk-o-Meter will be mandatory in offer documents, abridged prospectuses, private placement memorandums, advertisements and on the web and mobile pl...