New Delhi, Oct. 9 -- If you invest through Online Bond Platform Providers (OBPPs), a new risk-o-meter will help you analyze the credit risk of corporate bonds and other debt instruments.

According to a SEBI circular released on 7 October, the meter will be mandatory in offer documents, private placement memorandums, advertisements and on OBPPs' web and mobile platforms. It will map credit ratings to six colour-coded credit-risk levels.

The provisions may come into force on 21 November 2026, "45 days after the circular was issued." Here's what investors need to know and how to read the risk-o-meter.

The risk-o-meter may be seen as a traffic light for the credit risk of a bond. SEBI has translated credit ratings into six colour bands, fr...