PaRRVA: SEBI’s Agency to Verify Past Risk and Returns
Why in the news
SEBI set up PaRRVA to check performance claims, cutting mis-selling and tightening oversight of online finfluencers.
About PaRRVA
| Aspect | Detail |
|---|---|
| Full form | Past Risk and Return Verification Agency |
| Launched | 8 December 2025 |
| Purpose | Verified track records; accountable intermediaries |
| Mechanism | Digital audit trails, standardised reporting |
- Investors see verified records; regulators get audit trails for enforcement.
- Standard reporting limits exaggerated returns; intermediaries can show genuine history.
Significance
- Investor protection: blocks misleading claims by finfluencers or unregistered entities.
- Market integrity: brokers and mutual funds answer for claims.
- Digital regulation: SEBI can monitor online advice.
Background
- SEBI told brokers and mutual funds to cut ties with unauthorised social media advisors.
Exam angle
- Regulator: SEBI; aim: curb mis-selling.