SEBI operationalised Past Risk and Return Verification Agency (PaRRVA) on April 29, 2026, through Press Release 28/2026. PaRRVA is a verification mechanism to authenticate historical performance claims made by mutual funds, portfolio management services, and other SEBI-regulated entities. The agency will cross-verify past risk-return data to prevent misleading advertisements and protect investor interests. This initiative strengthens SEBI's regulatory oversight of performance disclosure norms in Indian capital markets.

PaRRVA addresses a critical gap in India's financial market infrastructure - the verification of historical performance claims. Previously, asset management companies and portfolio managers could present selective or unverified past performance data in marketing materials, potentially misleading retail investors. The agency will maintain a centralised database of verified risk-return metrics, enabling investors to access authenticated performance histories before making investment decisions. This mechanism is particularly crucial given India's growing retail participation in mutual funds (44+ crore folios as of 2026) and the increasing sophistication of investment products. PaRRVA aligns with SEBI's broader investor protection mandate, complementing existing regulations on advertisement standards and performance disclosure. The agency will likely use standardised risk metrics like Sharpe ratio, beta, and maximum drawdown to ensure consistency across industry players. This initiative also supports SEBI's digitisation efforts, potentially integrating with existing platforms like SEBI Complaints Redress System (SCORES) and Investor Grievance Redress System. International precedents like SEC's performance verification requirements in the US provide a regulatory framework reference. PaRRVA's operationalisation reflects SEBI's proactive approach to market integrity as Indian capital markets continue expanding.