Past Risk and Return Verification Agency (PaRRVA)

Past Risk and Return Verification Agency (PaRRVA) Latest News

Recently, the Securities and Exchange Board of India (SEBI) has operationalised the Past Risk and Return Verification Agency (PaRRVA).

About 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
• Features

• • 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.

Source: News on Air

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