Brief Overview:
Past Risk and Return Verification Agency (PaRRVA), a pioneering, tech-driven mechanism that provides independent verification of the past performance of SEBI-registered intermediaries has been launched.
Technical Details:
Key Highlights
1) Independent Verification: An independent, pioneering mechanism to verify and communicate past performance of regulated intermediaries.
2) Targeted Intermediaries: Covers registered investment advisers, research analysts, and stock brokers.
3) Investor Access & Protection: Intermediaries are not permitted to selectively display favorable returns, hence ensuring transparency.
4) Oversight Committee: PaRRVA and PDC, will be monitored to ensure adherence of published verification methodology and upholding data privacy.
5) Structural Reform: Tech-driven, data-backed structural reform, expected to set a new international benchmark for market transparency.
Takeaways:
PaRRVA represents a significant structural reform to enhance investor protection, combat misleading performance claims from finfluencers and strengthen market integrity. For regulated entities, PaRRVA will provide a platform to showcase genuine performance to clients.
For further details, please see:
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