New Delhi, Dec 8 Launching Past Risk and Return Verification Agency (PaRRVA), Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Monday said that the platform will provide investors “credible performance data” and regulated entities a platform to showcase genuine performance to clients.
SEBI announced the pilot launch of PaRRVA, “a first-of-its-kind global initiative to validate risk-return metrics by investment advisors, research analysts and trading members, a statement said.
"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," said SEBI Chairman.
Pandey said that PaRRVA will provide investors “clarity and confidence” as it bring transparency and standardisation to performance claims made by financial intermediaries.
Ashishkumar Chauhan, MD & CEO, National Stock Exchange (NSE) called PaRRVA 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," said Chauhan.
It ensures that all risk-return metrics presented to investors are independently verified and compliant with the verification methodologies developed in line with recommendations from Industry participants.
Intermediaries can submit their recommendations through secure API-based integration or file uploads, following which PaRRVA – PDC conducts a comprehensive validation and generates risk and return metrics.
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.
PaRRVA strengthens compliance by preventing selective presentation of returns, avoiding client-specific claims and ensuring that every metric is backed by the required disclosures, the statement said.
The platform’s secure data architecture, along with T+1 validation for portfolios and end-of-day checks for intraday strategies, helps maintain both accuracy and speed.
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