The Securities and Exchange Board of India (Sebi) on Monday launched the Past Risk and Return Verification Agency (PaRRVA). Sebi chairman Tuhin Kanta Pandey calls it an “important step to strengthen the integrity and transparency of India’s securities market.”

The initiative launched on December 8, 2025, introduces a mechanism for SEBI-registered intermediaries to showcase verified past returns to investors.

Need for independent verification

Tuhin Kanta Pandey noted that performance reporting in the securities market has long posed risks for investors. Finfluencers often lure investors with exaggerated or fabricated returns; unscrupulous intermediaries further fuel investor uncertainty with exaggerated claims, the Sebi chairman said.

Sebi-registered intermediaries such as stock brokers, investment advisors, and research analysts cannot refer to their past performance, making it difficult to establish their credentials. The market watchdog said that while unregistered entities make unverified claims, drawing away investors from regulated intermediaries, the latter struggles to attract investors despite genuine track records.

The latest investor survey by Sebi:

1. Only 36% investors possess adequate knowledge about the securities market, making them vulnerable to unverified claims

These findings, as the market regulator says, “highlight the need for credible performance data to manage expectations and promote responsible investing.”

How PaRRVA works

Sebi chairman Tuhin Pandey says PaRRVA is built on a simple idea – investors deserve performance numbers they can trust.

The framework connects a Sebi-registered Credit Rating Agency (CRA) acting as PaRRVA with a recognised stock exchange serving as the PaRRVA Data Centre (PDC). Together, the PaRRVA and the PDC will independently verify past returns, using a transparent and standardised methodology, the chairman said.

Intermediaries will not be permitted to selectively display PaRRVA verified returns of any specific product or service. The verified performance shall be for specific periods, and arbitrary selection of dates or time-periods to present favourable data outcome will not be permitted, he added.