SEBI Chairman Tuhin Kanta Pandey and NSE MD & CEO Ashishkumar Chauhan at the launch of the 'Past Risk and Return Verification Agency' (PaRRVA), a global-first initiative introduced by SEBI, at the NSE in Mumbai, December 8, 2025. Photograph: ANI Photo
In a major move to boost transparency in Indias financial markets, the Securities and Exchange Board of India on Monday launched the Past Risk and Return Verification Agency (PaRRVA)- - a new verification mechanism designed to authenticate past performance claims made by regulated market intermediaries.
Care Ratings in collaboration with the NSE on Monday launched PaRRVA on a pilot basis.
Speaking at the launch event, Sebi Chairman Tuhin Kanta Pandey said PaRRVA would serve as a pioneering framework that allows Sebi-registered investment advisers, research analysts and algorithmic stock brokers to present independently validated past returns to investors.
Pandey highlighted growing concerns around unverified performance claims in the securities market, especially by finfluencers and unregistered entities. Many of these voices, he noted, attract investors through exaggerated or fabricated track records, often overshadowing the more regulated parts of the ecosystem.
If we can enable registered intermediaries to communicate their performance, which is validated, it will allow investors to take informed decisions, the Sebi chief said.
Under the new framework, PaRRVA will function through a two-tier structure involving: A Sebi-registered credit rating agency serving as the PaRRVA and a recognised stock exchange acting as the PaRRVA Data Centre (PDC)
Both entities will independently verify returns using a uniform, transparent methodology. Importantly, intermediaries will not be allowed to selectively disclose only favourable performance periods.
Investors deserve performance numbers they can trust, Pandey said, emphasising that arbitrary date selection for favourable outcome will be prohibited.
An oversight committee will monitor both the agency and the data centre, ensuring compliance with methodology and safeguarding data privacy.
On the sidelines of the event, Pandey said Sebi will bring in changes in rules governing data usage for education purposes to ensure that current live data is not used.
The comments come days after Sebi barred fininfluencer Avdhoot Sathe and his education outfit from securities market dealings and directed impounding of ₹546 crore in alleged unlawful gains.
Avadhut Sathe Academy To Challenge Sebi 0rder
Avadhut Sathe Trading Academy (ASTA) has 'categorically' denied allegations by Sebi, asserting it operates solely as an educational and training institution. It called itself a 'victim of regulatory vacuum'.
Sebis ex-parte interim order, issued on Thursday, barred ASTA and founder Avadhut Sathe from the securities market dealings and directed impounding of Rs 546 crore in alleged unlawful gains.
The markets regulator accused the academy of offering unregistered investment advisory and research analyst services disguised as stock market education. It flagged the entire Rs 601 crore fee pool collected since 2015 from over 300,000 participants as under scrutiny.
The outfit is expected to move the Securities Appellate Tribunal soon. In its statement, the academy stressed that its programmes focus on skill-building and decision-making for investors and traders, without issuing stock recommendations, investment advice, research reports, or executing transactions. It clarified that all session examples and references serve purely educational purposes and lack advisory intent.
-- Business Standard
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