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SEBI introduces Credit Risk-o-Meter for debt securities

14 October 2026 · ⏱ 2 मिनिटे · GS-III: Capital markets; investor protection

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बातमीत का?

SEBI's new colour-coded Credit Risk-o-Meter: which Act made the regulator statutory, and in what year?

The Securities and Exchange Board of India has mandated a colour-coded Credit Risk-o-Meter for specified debt securities through a circular dated 7 October 2026, to help investors see credit risk at a glance. SEBI is the capital-market regulator set up under the SEBI Act, 1992.

Why it matters: factual, Prelims-type

2

What you need to know

2 मिनिटे

The Securities and Exchange Board of India has mandated a colour-coded Credit Risk-o-Meter for specified debt securities through a circular dated 7 October 2026, to help investors see credit risk at a glance.

SEBI is the capital-market regulator set up under the SEBI Act, 1992.

स्रोत: Topper IAS editorial (PIB / The Hindu / Indian Express)

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महत्त्वाची तथ्ये

Remember these

  • SEBI issued a circular dated 7 October 2026 mandating a colour-coded Credit Risk-o-Meter for specified debt securities.
  • The meter lets investors see the credit risk of a debt security at a glance.
  • SEBI is the capital-market regulator, set up under the SEBI Act, 1992.
  • SEBI was created administratively in 1988 and gained statutory status through the 1992 Act.
  • SEBI is headquartered in Mumbai.
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पूर्व · मुख्य

How the exam will ask it

पूर्व

  • SEBI became a statutory body under the SEBI Act, 1992; before that it functioned as an administrative body from 1988.
  • A Credit Risk-o-Meter is a colour-coded visual tool meant to show investors the credit risk of a debt security at a glance.
  • SEBI is the regulator of the securities (capital) market in India and is concerned with investor protection.

मुख्य

GS-III: Capital markets and investor protection. Retail investors in debt securities often cannot judge credit risk, so SEBI's circular mandates a simple colour-coded risk-o-meter, building on the SEBI Act, 1992 mandate of investor protection. This improves disclosure and informed choice; the way forward is standardised, regularly updated risk labels backed by investor financial-literacy efforts.

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Quick recall

Answer before you reveal

The Securities and Exchange Board of India was given statutory status through the SEBI Act of:

  1. 1988
  2. 1992
  3. 1996
  4. 2002
उत्तर पहा

उत्तर: B — 1992 is correct. 1992 is correct. SEBI was set up administratively in 1988 and became a statutory body under the SEBI Act, 1992.

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