Past Risk and Return Verification Agency (PaRRVA):
The Securities and Exchange Board of India (SEBI) has operationalised the Past Risk and Return Verification Agency (PaRRVA).
- It is a regulatory initiative designed to bring transparency and standardization to performance claims made by financial intermediaries.
- It has been operationalised by the Securities and Exchange Board of India (SEBI)
- Designated Entities: CARE Ratings Limited has been granted recognition as the PaRRVA and the National Stock Exchange of India Limited (NSE) will function as the PaRRVA Data Centre (PDC).
- The following entities can Use PaRRVA:
- Investment Advisers (IA)
- Research Analysts (RA)
- Trading Members (TM)
- Investors seeking verified performance data
- It will enable regulated entities such as investment advisers, research analysts, and algorithmic trading service providers to showcase their verified performance.
- It will enable investors to access reliable and standardised data for informed decision-making.
- Additionally, regulated entities will be permitted to use PaRRVA-verified performance in their advertisements, in line with SEBI’s regulatory provisions.
- It ensures that all risk-return metrics presented to investors are independently verified and compliant with SEBI guidelines.
