Regulatory Alerts2025-04-04
Recognition and Operationalization of Past Risk and Return Verification Agency (PaRRVA)
The Securities and Exchange Board of India (SEBI) has issued a circular recognizing Credit Rating Agencies as Past Risk and Return Verification Agencies (PaRRVA) to verify risk-return metrics for regulated persons. The document establishes strict eligibility criteria for PaRRVAs and PaRRVA Data Centres, outlines a two-stage recognition process, and mandates a two-month pilot phase for operationalization. Additionally, SEBI amends Master Circulars for Investment Advisers, Research Analysts, and Stock Brokers to permit references to past performance only when verified by PaRRVA and presented according to specified guidelines.
Share