Securities and Exchange Board of India (SEBI) appointed Care Ratings Ltd. to function as the Past Risk and Return Verification Agency (PaRRVA), according to a circular released 29, April 2026.
The agency will vet Investment advisors and research analysts for their past performance and risk, according to the PaRRVA framework. CRL will begin operations from 4, May 2026 SEBI said in the circular. This will also include stock brokers and algorithm traders.
“After two years from the date of operationalization of PaRRVA, IAs/RAs will be permitted to communicate/display only PaRRVA verified risk and return metrics and will not be permitted to use past performance data related to the period prior to the date of operationalizationof PaRRVA, in any communication to clients (including prospective clients),” SEBI said. IA/RA who wish to enroll for PaRRVA must do so within August 3, 2026