The Securities and Exchange Board of India first laid the groundwork for the Past Risk and Return Verification Agency (PaRRVA) through a framework circular dated 4 April 2025, designed to put an end to cherry-picked or misleading performance claims by Investment Advisers (IAs), Research Analysts (RAs) and providers of algorithmic trading services. Under the framework, Credit Rating Agencies could seek recognition as a PaRRVA through a two-stage process involving in-principal approval followed by a formal site visit and audit, while a designated Stock Exchange would serve as the PaRRVA Data Centre. CARE Ratings Limited duly secured recognition as the PaRRVA, with the National Stock Exchange of India Limited functioning as the Data Centre, and a two-month pilot phase began on 8 December 2025, ironing out the technological creases before the system went live for good.
Full-scale operations commenced on 4 May 2026, and vide Circular No. HO/38/14/ (4)2026-MIRSD-POD/I/10557/2026 dated 29 April 2026, IAs and RAs wishing to keep sharing certified past performance data with clients were given three months, that is, until 3 August 2026, to enrol with PaRRVA. Miss that boat, and an entity would be barred from communicating certified historical performance metrics altogether. By its subsequent Circular No. HO/38/14/ (11)2026-MIRSD-POD1/I/18038/2026 dated 3 August 2026, SEBI has given the industry a further month’s grace, pushing the enrolment deadline out to 3 September 2026, following representations from stakeholders citing operational hurdles. Once enrolled, risk-return metrics are verified by PaRRVA strictly on a prospective basis from the date an entity opts in, and pre-operational, unverified performance figures are gradually being phased out altogether in favour of independently authenticated data, with an oversight committee keeping a watchful eye on both the PaRRVA and the Data Centre