SEBI proposes colour-coded Credit Risk-o-Meter for debt securities

SEBI is a regulator that watches over investing in India.

When people buy bonds, they are lending money to a company.

Some companies are safe to lend to, and some are risky.

SEBI has a new idea called a Credit Risk-o-Meter.

It is a colour chart, like a traffic light, that shows how risky a bond is.

Green means very safe, and red means there is a big chance the company may not pay back.

The chart has six colours from green to red.

Companies that sell bonds would have to show this chart so investors can understand the risk easily.

People can tell SEBI what they think about the idea until September 3.