The Securities and Exchange Board of India (SEBI) has launched the Past Risk and Return Verification Agency (PaRRVA) framework to improve transparency regarding performance claims made by market intermediaries. In a statement, SEBI announced that Care Ratings has been recognized as the PaRRVA, while the National Stock Exchange of India Limited (NSE) will act as the PaRRVA Data Centre (PDC) under the regulatory framework established on April 4, 2025.
A pilot phase of this initiative began on December 8, 2025, and following its successful completion, full-scale operations of PaRRVA are set to commence on May 4, 2026. This initiative aims to enable regulated entities to provide verified performance metrics, allowing investors to access standardized and reliable data to make informed decisions.
PaRRVA will validate performance claims associated with investment advisory services, research services, and algorithmic trading offerings. Additionally, regulated entities will be permitted to use this verified data in advertisements, adhering to the relevant regulatory guidelines. This move is expected to mitigate misleading claims and enhance accountability among intermediaries.
Published on April 29, 2026.
