Q. Consider the following statements regarding the Past Risk and Return Verification Agency (PaRRVA):
1.It is an initiative launched by the Securities and Exchange Board of India (SEBI).
2.It will enable regulated entities such as investment advisers, research analysts, and algorithmic trading service providers to showcase their verified performance.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

Explanation: Both 1 and 2

  • PaRRVA is a SEBI-led framework that verifies past performance (risk and returns) of intermediaries like investment advisers and research analysts to enhance transparency and investor protection. The framework explicitly prohibits selective disclosure (cherry-picking favourable periods); performance must be presented in a standardised and transparent manner.

Source: AIR

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