Past Risk and Return Verification Agency (PaRRVA)

Why in the News?
The Securities and Exchange Board of India (SEBI) has operationalised the Past Risk and Return Verification Agency (PaRRVA), with full-scale operations set to begin from May 4, 2026, after a successful pilot phase.

About PaRRVA
The Past Risk and Return Verification Agency (PaRRVA) is a regulatory mechanism designed to verify and standardise the historical performance (risk and returns) of financial service providers. It enhances transparency and credibility in the financial markets.

Institutional Framework

• CARE Ratings Limited has been recognised as the PaRRVA.
• National Stock Exchange of India Limited (NSE) will act as the PaRRVA Data Centre (PDC), managing data infrastructure.

Key Features
PaRRVA allows regulated entities such as investment advisers, research analysts, and algorithmic trading service providers to present their performance only after independent verification. Investors can access authenticated data, reducing misinformation and misleading claims.

Significance
The initiative strengthens investor protection by ensuring that past performance data used in marketing and advisory services is accurate and reliable. It promotes transparency, builds trust in financial markets, and supports informed investment decisions.

Source: AIR