SEBI Unveils PaRRVA Pilot to Standardise Investment Performance
India launches a first-of-its-kind system for verified investment performance data
CARE Ratings and NSE introduce PaRRVA, SEBI’s pioneering framework that independently validates risk-return claims, setting a new benchmark for transparency and investor trust.
In a milestone moment for India’s financial markets, CARE Ratings Limited, working in partnership with the National Stock Exchange of India (NSE), has rolled out the pilot phase of the Past Risk and Return Verification Agency (PaRRVA). The initiative—conceptualised by SEBI—was officially launched today by SEBI Chairman Shri Tuhin Kanta Pandey, marking a significant leap toward greater transparency and reliability in performance reporting across the securities ecosystem.
PaRRVA is the first framework of its kind globally, designed to independently validate risk–return disclosures made by Investment Advisors, Research Analysts, and Trading Members. By verifying claims through a structured methodology, the platform aims to improve credibility, enhance regulatory compliance, and strengthen investor confidence.
As India’s retail investor base expands at an unprecedented pace, PaRRVA is expected to become a pivotal tool for transparent performance verification. Every claim submitted by intermediaries undergoes third-party validation, allowing investors to make more empowered and informed decisions.
Built to introduce consistency and fairness in market disclosures, PaRRVA ensures that all risk-return information follows standardised methodologies shaped by industry recommendations. Intermediaries can send their recommendations via secure API-based integrations or file uploads. The PaRRVA Data Centre (PDC) then processes the information, computing nearly 50 risk and return matrices using transaction data pulled directly from stock exchanges and clearing corporations.
These verified metrics will be delivered to investors through the PaRRVA platform, with the option to access reports via QR code or a direct link.
Addressing the launch, Shri Tuhin Kanta Pandey, Chairman of SEBI, emphasised PaRRVA’s role in improving market clarity:
“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.”
He added that transparency remains fundamental to India’s long-term market development, reinforcing SEBI’s commitment to ensuring markets remain “fair, transparent, orderly and resilient.”
NSE MD & CEO Shri Ashishkumar Chauhan expressed the exchange’s support for the initiative:
“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.”
CARE Ratings Limited MD & Group CEO Shri Mehul Pandya highlighted the framework’s value for advisory professionals:
“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.”
PaRRVA also bolsters compliance norms by preventing cherry-picked performance presentations, restricting client-specific claims, and requiring full disclosure for every metric. Its secure architecture includes T+1 portfolio validation and end-of-day checks for intraday strategies—maintaining both precision and speed.
The platform is now operational and accessible at www.careparrva.com.