SEBI
SEBI launches Credit Risk-o-Meter for debt securities, eases debt-raising norms
7 October 2026 · www.business-standard.com
SEBI has introduced a colour-coded Credit Risk-o-Meter for listed and proposed debt securities to help investors gauge credit risk. It also relaxed private placement debt norms by raising the maximum number of ISINs maturing in a financial year.
Points to Remember
- Credit Risk-o-Meter maps credit ratings from AAA to D across six risk levels and applies to non-convertible securities, commercial papers, securitised debt instruments, security receipts and structured debt.
- SEBI raised the maximum number of ISINs maturing in a financial year to 17: 12 for plain vanilla debt (higher for large issuers), 5 for structured debt, plus 6 for Section 54EC capital gains tax bonds.
- NSE cautioned that some international ETFs are trading at substantial premiums to NAV because overseas investment limits for mutual funds have been fully utilised, restricting creation of fresh ETF units.
- NSE advised investors to check the latest NAV on the exchange, AMFI website or trading platforms before placing orders.
- NSE warned that ETF prices could decline sharply if overseas investment limits are increased or ETF price-band rules change from April 1, 2027.
Why it matters
If you advise clients on debt investments or ETFs, the new colour-coded risk meter makes credit risk easier to explain. Clients holding international ETFs at steep premiums may need a caution about potential price falls.
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