SEBI Introduces PaRRVA Framework to Ensure Verification of Past Investment Performance:

SEBI Introduces PaRRVA Framework to Ensure Verification of Past Investment Performance The Securities and Exchange Board of India has issued a circular dated 29 April 2026 whose main purpose is to make PaRRVA (Past Risk and Return Verification Agency) officially operational and clarify its rules.

What is PaRRVA?

PaRRVA is an agency that will check whether the past returns reported by an investment advisor (IA) or research analyst (RA) are correct or not. Its main objective is to protect investors from false or inflated performance.

According to SEBI:

• CARE Ratings Limited has been accredited as a PaRRVA.
• The National Stock Exchange (NSE) will be its data centre (PDC).
• This service will start regularly from 4th May 2026.

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Important rules for IA and RA

Enrolment in PaRRVA

Investment advisors and research analysts who wish to show their past performance to their clients are required to register with PaRRVA. Last date of registration: 3 August 2026 If an IA/RA does not register by this date, he/she will not be able to show verified performance going forward. Time limit for showing past performance IA and RA can show their past performance only for a limited period of time. Allowed to show historical data (pre-PaRRVA period): until May 3, 2028 After this, only data verified by PaRRVA will have to be shown. Use of old, unverified data will be completely stopped.

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Changes in Oversight Committee

A committee is formed to monitor PaRRVA. Its structure has been changed in this circular.

This committee will include:

• Representatives of PaRRVA   
• Representatives of PDC (NSE)
• Other market intermediaries
• investor association representatives
• An experienced and independent chairman

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Important condition related to the committee

The number of independent members in the committee should be more than the representatives of PaRRVA and PDC. There must be at least five members in the committee. The changes given in this circular relate only to the composition of the committee. All other rules will remain applicable as per the circular issued earlier. This circular has been issued by SEBI under various rules and regulations to Investors' interests can be protected. The market can be developed and controlled properly.

Conclusion

The main objective of this circular is to provide correct and verified information to the investors. Now, investment advisors and research analysts will have to prove their performance claims.