India Pioneers Investment Performance Verification with PaRRVA Launch

India introduces the PaRRVA platform, a trailblazing framework for verifying investment performance, helping investors make informed choices. Developed by SEBI, CareEdge Ratings, and NSE, it offers reliable past performance data for SEBI-registered intermediaries. This initiative leads globally in mitigating risks from unverified performance claims.

India's status as a trailblazer in investment performance verification has been solidified with the launch of the Past Risk and Return Verification Agency (PaRRVA). Initiating this project, SEBI Chairman Tuhin Kanta Pandey unveiled a platform that will empower investors with reliable historical data to make informed decisions.

Partnering domestic rating agency CareEdge Ratings and the National Stock Exchange (NSE), this pioneering effort establishes an independent mechanism ensuring the authenticity of past performance claims. The PaRRVA aims to fill the gap left by regulations prohibiting SEBI-registered intermediaries from citing past performance, a space often exploited by unregistered entities.

The PaRRVA framework connects a SEBI-registered Credit Rating Agency (CRA) with a recognized stock exchange acting as the PaRRVA Data Centre (PDC). Both entities will independently verify returns using a standardized methodology, establishing a new standard for transparency in India's financial markets, Pandey explained.

(With inputs from agencies.)