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News: The Securities and Exchange Board of India (SEBI) has operationalised the Past Risk and Return Verification Agency (PaRRVA) to bring transparency and standardisation to performance claims made by financial intermediaries.
About Past Risk and Return Verification Agency (PaRRVA)
- Past Risk and Return Verification Agency (PaRRVA) is a regulatory initiative designed to bring transparency and standardisation to performance claims made by financial intermediaries.
- Operationalized by: It has been operationalised by the Securities and Exchange Board of India (SEBI).
- Operation from: The agency will begin regular operations from May 4, 2026.
- Aim: It aimed at enhancing transparency and investor protection in the financial markets.
- PaRRVA recognised: CARE Ratings Limited has been granted recognition as the PaRRVA.
- PaRRVA Data Centre (PDC): National Stock Exchange of India Limited (NSE) will function as the PDC.
- Beneficiary: The following entities can use PaRRVA:
- Investment Advisers (IA)
- Research Analysts (RA)
- Trading Members (TM)
- Investors seeking verified performance data
- Function:
- Investor protection and promotion of Market integrity: It will enable regulated entities such as investment advisers, research analysts, and algorithmic trading service providers to showcase their verified performance.
- Data-driven decisions: It will also allow investors to access reliable and authenticated performance data, improving informed decision-making.
- Regulatory compliance: Regulated entities will be permitted to use PaRRVA-verified performance in their advertisements, in line with SEBI’s regulatory provisions.
