SEBI operationalises PaRRVA framework for verifying past risk‑return claims

What: SEBI’s PaRRVA (Past Risk and Return Verification Agency) framework became operational (from 4 May 2026); CARE Ratings recognised as PaRRVA, NSE as PaRRVA Data Centre; pilot began Dec 2025.

Objective: Independent validation of performance claims by intermediaries and unregistered finfluencers to protect investors.

Significance: Enhances transparency, curbs misleading performance marketing and protects retail investors.

UPSC relevance: Market regulation, investor protection, financial literacy.

Practice Q: How can third‑party verification frameworks improve trust and discipline in capital markets?