SEBI Introduces PaRRVA Verification Tool to Strengthen Return Disclosure Standards and Improve Investor Trust Nationwide

Wednesday, December 10, 2025: CARE Ratings Limited, in collaboration with the National Stock Exchange of India Limited (NSE), today announced the pilot launch of Past Risk and Return Verification Agency (PaRRVA), a first of its kind global initiative conceptualised by SEBI. The pilot was inaugurated by SEBI Chairman Shri Tuhin Kanta Pandey today.

The unique tool will validate risk-retun metrics for registered intermediaries. The aim of the central body is to boost investor trust and market transparency with the help of the tool. It will ensure that the metrics that are communicated with the investors are independently verified. PaRRVA will also ensure that the metrics are compliant with Industry standards.

How Will It Work?

Under PaRRVA, intermediaries will submit their recommendations through secure API-based integration or file uploads. Once the system receives the information, it will conduct a comprehensive validation and generate risk and return metrics on it. 

Close to 50 different risk and return matrices are computed based on transaction data directly sourced from the stock exchanges and clearing corporations, which will be disseminated to investors via the PaRRVA platform. Investors can also view the reports by scanning QR code or using a link directing investors to the official PaRRVA portal.

What Is the Aim of PaRRVA?

Shri Tuhin Kanta Pandey, Chairman, Securities and Exchange Board of India (SEBI), addressing the event mentioned that “For investors, PaRRVA gives clarity and confidence. PaRRVA, in due course, will provide investors with credible performance data related to investment services offered to them. For regulated entities, PaRRVA will provide a platform to showcase genuine performance to clients. Investor transparency is the cornerstone of sustainable market development. PaRRVA reaffirms SEBI’s unwavering commitment to keep India’s securities markets fair, transparent, orderly and resilient”. 

Sharing his view on the PaRRVA launch, Shri Ashishkumar Chauhan, MD & CEO, National Stock Exchange (NSE) said, “PaRRVA is an important SEBI-led step towards strengthening transparency, standardisation and investor confidence in performance-related disclosures. NSE is pleased to support this initiative by providing the PaRRVA Data Centre (PDC), enabling the framework to leverage authenticated market data for robust risk and return verification. We believe this will enhance trust in the ecosystem and help investors make more informed decisions.” 

Speaking at the event, Shri Mehul Pandya, MD & Group CEO, CARE Ratings Limited said, “PaRRVA brings a new level of trust, discipline and transparency to the financial advisory space. Investors today demand credibility, and PaRRVA’s independent validation framework ensures they receive accurate, standardised and unbiased performance information. This initiative reinforces our commitment to strengthening market integrity and empowering investors with reliable data”.

Further, the system will strengthen overall compliance in the market as it will prevent selective presentation of returns, avoid client-specific claims and ensure that every metric is backed by the required disclosures. The system is backed by secure data architecture, along with T+1 validation for portfolios and end-of-day checks for intraday strategies, which will enable it in maintaining both accuracy and speed.

Source: https://nsearchives.nseindia.com//web/pressrelease/2025-12/PR_cc_08122025_20251208115202.pdf

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