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Past Risk and Return Verification Agency (PaRRVA) SEBI'S NEW WATCHDOG India
Indian Economy & Market
|May 2025
SEBI has recently launched the Past Risk and Return Verification Agency (PaRRVA)to bring a much-needed dose of transparency and credibility to the often murky world of risk-return claims.
Shivanand Pandit says that PaRRVA is a much-needed initiative, especially in a market increasingly crowded with influencers and unregulated tipsters making unchecked claims. If executed well, it can enhance investor trust by allowing Regulated Persons to showcase verified past performance.
Big news just dropped from the Securities and Exchange Board of India (SEBI) that could reshape the landscape of investment advice and algorithmic trading. On April 4, 2025, SEBI unveiled a game-changing circular announcing the launch of the Past Risk and Return Verification Agency (PaRRVA). This new initiative is set to bring a much-needed dose of transparency and credibility to the often murky world of risk-return claims. SEBI initially introduced the PaRRVA initiative in December 2024 to validate the performance claims made by investment advisors (IAs), research analysts (RAs), and algorithmic trading service providers.
The PaRRVA framework serves as a regulatory tool aimed at validating the risk and return parameters of financial products and services. By offering credible and standardised data, it equips investors, financial advisers, research analysts, and algorithmic traders with the insights needed for informed decision-making. This initiative reflects SEBI's ongoing commitment to strengthening investor trust and upholding the integrity of the securities market.
This story is from the May 2025 edition of Indian Economy & Market.
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