The Securities and Exchange Board of India (SEBI), on April 29, 2026, issued a circular operationalising the Past Risk and Return Verification Agency (PaRRVA) framework. Pursuant to earlier guidelines, Care Ratings Limited has been recognised as PaRRVA, with National Stock Exchange of India Limited acting as the PaRRVA Data Centre (PDC). Following completion of the pilot phase, PaRRVA services will become fully operational from May 4, 2026.
The circular mandates that Investment Advisers (IAs) and Research Analysts (RAs) intending to communicate certified past performance data must enrol with PaRRVA within three months of operationalisation, i.e., by August 3, 2026. They are permitted to use pre-PaRRVA performance data only until May 3, 2028, after which only PaRRVA-verified risk and return metrics can be communicated to clients. This framework aims to standardise and enhance credibility of performance disclosures in the securities market.
Further, SEBI has revised the composition of the PaRRVA Oversight Committee to include representatives from PaRRVA, PDC, intermediaries, investor associations, and an independent chairperson with regulatory experience. The circular strengthens governance, transparency, and investor protection by ensuring robust verification of performance claims and aligning disclosures with regulatory standards.
[Circular No. HO/38/14/(4)2026-MIRSD-POD/I/10557/2026]
