SEBI has made a six-colour credit risk-o-meter mandatory for all debt securities. Here is how to read it before you invest.

The scale has six levels. Irish Green marks AAA, the safest, followed by shades for AA, A, BBB, BB and B. Red covers B-plus to D, signalling high to very high default risk.

Where will you see it? In offer documents, abridged prospectuses, advertisements and on online bond platforms. It will be hard to miss, by design.

Key rules to know. If a bond has multiple ratings, the lowest one decides the colour. Unsecured instruments must be flagged in bold red, so you know your money has no collateral backing.

Why it matters. Debt products can be complex, and retail investors have been hurt by defaults in high-yield bonds. The risk-o-meter gives you a one-glance sense of credit risk. It comes into force 45 days after the October 7 circular.