SEBI Operationalises PaRRVA – Investment Advisers & Research Analysts Must Now Verify Performance Claims
Updated: Aug 11
Last Reviewed and Updated: 17 Aug 2026
Circular No: HO/38/14/(4)2026-MIRSD-POD/I/10557/2026 | Issued: 29 April 2026 | Effective: 4 May 2026
What Is PaRRVA?
The Past Risk and Return Verification Agency (PaRRVA) is a new regulatory mechanism created by SEBI to independently verify performance and return claims made by investment advisers (IAs), research analysts (RAs), and algorithmic trading service providers. The goal is simple: to stop regulated financial entities from cherry-picking their wins when advertising track records to clients.
Before PaRRVA, there was no standardised, independent check on these claims. Advisers and analysts could selectively present their best-performing recommendations, ignore their losses, and build marketing narratives unchallenged. PaRRVA closes that gap.
Who Has Been Designated to Run It?
CARE Ratings Limited has been recognised as the official PaRRVA, the verifying body responsible for independently auditing and certifying the past performance data submitted by IAs and RAs.
National Stock Exchange of India (NSE) will act as the PaRRVA Data Centre (PDC), providing the infrastructure and market data required for verification.
Who Does This Affect?
This circular directly impacts three categories of SEBI-regulated entities:
1. Investment Advisers (IAs): Any adviser wanting to show clients their past advisory performance must have that data independently verified by PaRRVA before publishing.
2. Research Analysts (RAs): Same applies. Stock picks, return claims, and recommendation track records must go through the PaRRVA process.
3. Algorithmic Trading Service Providers: Algo trading platforms claiming historical performance for their trading strategies must also use PaRRVA-verified data.
Key Rules on How Performance Can Be Presented
SEBI has set clear guardrails on what a verified performance disclosure must look like:
No cherry-picking: Claims must include comprehensive data, total number of portfolios advised, total number of recommendations made, aggregate gains and losses. Selective disclosure of only profitable outcomes is explicitly prohibited.
Balanced view mandatory: Positive and negative outcomes must both be presented. Any performance claim that does not include the downside will not receive PaRRVA certification.
Context required for individual stock claims: Any reference to individual stock performance must include the overall portfolio context so investors can assess whether the highlighted stock was representative or an outlier.
Advertisements permitted: Regulated entities may use PaRRVA-verified data in their advertising and client communications, but only the verified version. Unverified performance claims in promotional material will constitute a regulatory violation.
Timeline
April 2025: SEBI issued the original framework circular recognising and operationalising PaRRVA as a concept.
December 2025: A pilot phase began, with verification services tested and refined with a small set of entities.
29 April 2026: This circular, confirming CARE Ratings and NSE in their roles, activating the operational rules, and defining the disclosure requirements.
4 May 2026: PaRRVA goes fully live. From this date, any performance claim used publicly by an IA, RA, or algo trading provider must be PaRRVA-certified.
Why This Matters for Investors
For retail investors, this is a meaningful step forward. The Indian advisory ecosystem has long been plagued by unverifiable performance claims from both registered and unregistered advisers. The promise of “200% returns in 6 months” circulates freely on social media, and even regulated entities have been able to present selective data without consequence.
Update (August 2026): Enrollment Deadline Extended
The original circular required IAs and RAs to enrol with PaRRVA by August 3, 2026 to keep sharing certified past performance with clients. On August 3, 2026, SEBI issued a follow-up circular extending that enrollment deadline by one month, to September 3, 2026, after industry participants flagged practical challenges completing enrollment in time. IAs and RAs who miss the revised deadline will be barred from communicating certified historical performance figures to clients until they complete enrollment.
Source: Securities and Exchange Board of India (SEBI) | Circular No. HO/38/14/(4)2026-MIRSD-POD/I/10557/2026
Disclaimer
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Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not indicative of future returns. NAV, returns, rankings, and other data may change and may not reflect the most current information at the time of reading.
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