SEBI Launches PaRRVA Framework

The Securities and Exchange Board of India (SEBI) has operationalised the Past Risk and Return Verification Agency (PaRRVA) to enhance transparency and investor protection. As per its April 29, 2026 circular, CARE Ratings Limited is recognised as PaRRVA, while National Stock Exchange of India (NSE) will function as the Data Centre. This initiative ensures investors receive authenticated past performance data from Investment Advisers (IAs) and Research Analysts (RAs), curbing misleading claims and improving trust. Introduced via SEBI’s April 4, 2025 framework, PaRRVA allows a Credit Rating Agency to act as a verifier in coordination with a stock exchange. Following its pilot phase, CARE Ratings will begin full-scale operations from May 4, 2026. PaRRVA’s core role is to independently validate historical risk-return data shared by IAs and RAs, ensuring accuracy, standardisation, and credibility—helping investors make informed decisions. SEBI mandates that IAs and RAs must register with PaRRVA within three months (deadline: August 3, 2026) to continue sharing verified performance data. Non-compliance will prohibit such communication. A sunset clause permits use of pre-PaRRVA data only until May 3, 2028, after which only PaRRVA-verified metrics will be allowed in all communications. The reform aims to eliminate exaggerated claims, enforce fair practices, and strengthen governance, including proposed enhancements to the Oversight Committee. Overall, PaRRVA marks a key regulatory step toward greater transparency, accountability, and investor confidence in the financial ecosystem.