PaRRVA Explained: Past Risk & Return VerificationPaRRVA (Past Risk and Return Verification Agency) is the SEBI-recognised body that verifies research analysts' past performance. Care Ratings is the PaRRVA and NSE the data centre. You may only advertise past performance or risk-return metrics that PaRRVA has verified, presented in the way SEBI specifies.  Last updated: 21 October 2026 PaRRVA, the Past Risk and Return Verification Agency, is the SEBI-recognised body that verifies the past performance of research analysts, investment advisers and algo providers. A SEBI research analyst can only refer to past performance or risk-return metrics in an advertisement if PaRRVA has verified those metrics and the claim follows SEBI's presentation rules. To be ready for PaRRVA, you need clean, timestamped records of every recommendation, which is what recommendation performance records and analytics are for. This guide explains what PaRRVA is, who runs it, how verification works, what you may and may not say about performance, and the deadlines SEBI has set. It is a summary of SEBI circulars, not legal advice. Check the current SEBI rules and the PaRRVA website before you publish any performance claim. What is PaRRVA?PaRRVA is a framework created under Regulations 16D and 16E of the SEBI (Intermediaries) Regulations, 2008. SEBI set out how it works in its circular of 4 April 2025, "Recognition and operationalization of Past Risk and Return Verification Agency (PaRRVA)". The aim is simple: investors should be able to trust a performance number because an independent agency computed it from the recommendations you actually sent, not from a spreadsheet you prepared yourself. Before PaRRVA, the RA advertisement code banned any reference to past performance. The April 2025 circular amended that clause, so the master circular for research analysts now prohibits "reference to past performance or risk-return metrics" unless the metrics are verified by PaRRVA and the claim is made in the manner SEBI specifies. Who runs PaRRVA and what is the PaRRVA Data Centre?The framework has two parts that work as principal and agent. PaRRVA (the agency)A SEBI-registered credit rating agency recognised as PaRRVA. SEBI has recognised Care Ratings Limited as PaRRVA. It defines the methodology, signs agreements with the regulated persons, handles queries and disputes and publishes the verified metrics on its website. PaRRVA Data Centre (PDC)A recognised stock exchange that hosts the verification system. National Stock Exchange of India Limited (NSE) acts as the PDC. It receives the data, runs the calculations under PaRRVA's methodology and passes verified output back to PaRRVA. Who is responsibleThe April 2025 circular is clear that the complete responsibility for verification lies with PaRRVA, even though the PDC does the processing. Note that the PDC is NSE, while RAASB, the body that administers and supervises research analysts, is BSE. The two roles are separate. When did PaRRVA start operating?SEBI's press release and circular of 29 April 2026 set out the timeline. The table summarises the key dates for research analysts. Dates can be extended again, as the enrolment deadline already was. Check SEBI's circulars page for the latest position. Who must use PaRRVA?PaRRVA is not a registration you must hold to work as a research analyst. It becomes mandatory the moment you want to talk about past performance. RAs who advertise performanceIf any advertisement, website page, social post or brochure refers to past performance or risk-return metrics, those metrics must be PaRRVA verified and presented as SEBI specifies. RAs sharing certified pre-PaRRVA dataUnder the interim arrangement you could share performance certified by a member of ICAI or ICMAI, one-to-one and only on a client's request. To keep doing so you had to enrol with PaRRVA by the extended deadline of 3 September 2026. RAs who never mention performanceIf you make no performance claims at all, you are not required to enrol. You still have to keep recommendation records under Regulation 25, and model portfolios have their own benchmarking rule (see below). The same framework covers investment advisers and algo providers empanelled with stock exchanges, so dual-registered RA and IA firms should plan for both. How does PaRRVA verification work?Annexure A of the April 2025 circular describes the broad process.
The point that matters for your operations: verification is built on recommendations reported at the time they are made. You cannot reconstruct a track record afterwards. Your call logs need the security, action, entry, targets, stop-loss and timestamp for every recommendation, in a form you can export. What can a research analyst advertise using PaRRVA metrics?Annexure B of the circular sets presentation rules so verified numbers cannot be cherry-picked. No selective displayYou cannot show the verified metrics of one portfolio or stock in isolation if you recommended several in the period. A claim about one verified portfolio must state how many portfolios were verified and the range of positive and negative outcomes. Holistic claims for callsClaims about single-stock, derivative or intraday recommendations must refer to the number and range of positive and negative outcomes across all such recommendations, and must not name any specific stock or instrument. Fixed periods onlyMetrics are for specified periods. You cannot choose arbitrary dates to make results look better. Link or QR codeEvery claim, electronic or printed, must carry a link or QR code to your overall summary on the PaRRVA website. Printed material must include the overall summary too. No client-specific claimsYou may showcase metrics for your recommendations, but not claims about what a particular client earned. DisclaimersAnnexure C lists mandatory disclaimers, including that past performance is not indicative of future results and that verification is not an assurance that you comply with SEBI rules. All the other advertisement code rules still apply. Superlatives such as "best" or "No. 1", guaranteed or assured outcomes and "percentage accuracy" style claims remain prohibited. What were the interim rules for certified past performance?Section 23 of the RA master circular dated 6 February 2026 carries the interim arrangement from the 30 October 2025 circular:
Breaching these rules can lead to summary proceedings under Regulation 30A(1)(c) of the SEBI (Intermediaries) Regulations for unauthorised claims of returns or performance. How does PaRRVA affect model portfolios?Annexure A of the RA master circular requires each model portfolio to disclose performance "duly validated by agency/body as specified by SEBI" over different time periods, benchmarked to a relevant index. PaRRVA is the agency SEBI has set up for verifying risk and return metrics, so RAs offering model portfolios should check with PaRRVA how portfolio verification applies to them. Our guide to model portfolio rules for research analysts covers the rest of the framework. Is Finuro a PaRRVA?No. Finuro is not a PaRRVA, does not verify performance and does not file data with PaRRVA or the PDC on your behalf. Finuro keeps the records you need: each recommendation with horizon, entry range, targets and stop-loss, live price tracking with automatic status updates (target hit, SL hit, trailed SL hit, expired), delivery logs, an audit trail of edits and Excel export. Its performance analytics show success rate, P&L and accuracy by asset class and by financial-year half, with backtests kept separate. These are internal records and analysis; any number you publish must still come from PaRRVA. How to get ready for PaRRVAKeep one complete, timestamped log of every call and report, never delete or quietly edit old calls, and keep internal analytics out of your marketing until PaRRVA has verified the metrics. A system for recommendation performance records makes this routine, so you can export clean data when PaRRVA asks for it. Related Finuro features
Frequently asked questionsAnswers to common questions on this topic. Built for SEBI RAs and IAs Keep PaRRVA-ready recommendation recordsLog every call with timestamps, track outcomes automatically and export clean data whenever you need it. |
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