Summary of this article
Sebi has operationalised PaRRVA network
Sebi recognised Care Ratings as the first PaRRVA, and NSE as PaRRVA Data Centre
The Securities and Exchange Board of India (Sebi) has made the PaRRVA framework operational, laying out clear deadlines for investment advisers and research analysts to verify their past performance data, thereby tightening oversight in the advisory ecosystem. The market regulator wishes to standardise reporting norms for investment performance and verification across the securities market.
PaRRVA —short for Past Risk and Return Verification Agency—is designed to ensure that any return figures or track records shared with clients are accurate, consistent, and independently validated. The move comes amid growing concerns that some advisers were highlighting selective or inflated returns to attract investors, often without proper backing or disclosure.
In a circular dated April 29, 2026, Sebi recognised Care Ratings as the first PaRRVA, and the NSE as the PaRRVA Data Centre (PDC). The platform will go live online on May 4, after the pilot phase is completed. Sebi has also directed investment advisers (IAs) and research analysts (RAs) to enrol with the PaRRVA network by August 3, 2026 in order to continue sharing past performance data with clients. The circular said that after May 28, only IAs and RAs verified with the PaRRVA network will receive data, such as risk and return metrics. Client communication will no longer include pre-PaRRVA historical data.
Sebi has introduced a phased approach, giving firms time to align their internal systems and documentation. Entities will first need to compile all instances where past performance has been presented—across advertisements, client reports, and digital platforms—and then ensure the data is validated through approved mechanisms.
A key aspect of the framework is standardisation. Sebi wants performance metrics to be calculated and displayed in a uniform manner so that investors can easily compare different advisers. This includes clarity on assumptions, time periods, and risk factors associated with returns.
“PaRRVA shall carry out the verification of risk-return metrics for Investment Advisors (IAs), Research Analysts (RAs) and Algorithmic Trading, and those persons permitted by the Board to offer these services. It is clarified that the risk return metrics verification shall be made only on a prospective basis from the effective date of opting for the PaRRVA service,” Sebi said in a circular.
The introduction of PaRRVA is part of Sebi’s broader effort to strengthen investor protection as participation in financial markets continues to grow. By ensuring that performance claims are transparent and verifiable, the regulator aims to reduce misinformation and help investors make better-informed decisions.
