Operationalisation of Past Risk and Return Verification Agency (“PaRRVA”)

Category	Details
Circular Reference No.	HO/38/14/(4)2026-MIRSD-POD/I/10557/2026
Issuing Authority	Securities & Exchange Board of India (SEBI)
Effective From	May 04, 2026
Purpose	SEBI has officially operationalised the Past Risk and Return Verification Agency (PaRRVA). This framework is designed to bring transparency and standardization to how Investment Advisers (IAs) and Research Analysts (RAs) showcase their track records to the public.
Interpretation of Circular	The system functions through a partnership between a specialized agency and a data repository: – PaRRVA: Care Ratings Limited (CRL) has been recognized as the verification agency. – PDC (PaRRVA Data Centre): National Stock Exchange (NSE) will act as the central data hub.
Impact on Sub-Brokers	Mandatory Registration: You have exactly three months (until Aug 3, 2026) to enroll. If you miss this window, you lose the right to communicate any certified past performance data to prospective clients. Data Transition: You have a two-year window to transition your marketing and disclosure materials to solely reflect PaRRVA-verified risk and return metrics.
Impact on Clients (BOs)	Verified Performance: Clients need to take note that after May 2028, any performance claims made by an IA or RA that are not verified by PaRRVA are non-compliant with SEBI regulations.This move eliminates “cherry-picking” of data. You will eventually see only standardized, third-party verified returns, making it easier to compare different advisors. Increased Trust: Communication regarding returns will carry the weight of an independent verification by a SEBI-recognized agency.

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