Copyright © HT Digital Streams Limit all rights reserved. Markets Neha Joshi 2 min Read 04 Apr 2025, 09:50 IST Sebi informed on April 4 that credit rating agencies (CRAS) that meet strict suitability criteria can be recognized as Parrvas. Summary Parrva is set to give investors independent verification of the claims for the risk and return statistics of investment advisors, research analysts and algorithmic trading providers before investing. The Securities and Exchange Board of India (Sebi) issued a framework for the past Risk and Return Verification Agency (Parrva), designed to verify the risk and return statistics by investment advisers (IAS), research analysts (breed) and algorithmic trading. Parrva was established at Sebi’s council meeting on December 19 to give investors independent verification of the risk and yield features of these services before investing. On April 4, Sebi informed that Credit Rating Agencies (CRAS) that complied with strict suitability criteria could be recognized as Parrvas; While recognized stock exchanges will act as Parrva SATA Centers (PDCs), offering the necessary infrastructure. Also read: fraudsters can find a way around Sebi’s border fabrics about misleading ads, says experts Parrva will eventually be responsible for the verification process, although they can use PDC’s services. In the SEBI criteria, it is said that cra’s applying for Parrva status exist a minimum of 15 years and must have a net worth at least £ 100 crore, and the boures acting as PDCs must also have a minimum of 15 years and have a net worth of £ 200 crore. They are expected to have a robust mechanism for investors, including online dispute resolution (ODR). Sebi has made it clear that he will oversee a two-step recognition process that includes the approval of the principle, followed by final recognition. After final recognition, Parrvas will export a two -month pilot program to refine systems and processes. During this period, Sebi will collect feedback from regulated persons, and verified data will not be made public during the pilot. Parrva Supervision Panel also said that Parrvas would set up a supervisory committee to monitor activities. Any display of risk -grown statistics verified by Parrva and any claim used by such statistics must be accompanied by appropriate disclaimer, the circular is clarified. Also read: Sebi Chief warns against ‘Sledhammer’ regulation in the complex F&O market. These include, among other things, disclaimer that specifies that the performance of the past is not an indication of future results; Verified returns guarantee no insured returns, the information on risk rules cannot be used from the actual return for a client, and the verified return may differ from the actual return to a client, “the circular said. determined this system, which was erected within two months of the approval of Sebi, will also make appeals for the Parrva supervisory committee. free to offer an open offer to Vodafone Idea shareholders to the conversion of investors, complaints related to Parrva-verified risk and yield statistics or complaints directly against Parrva, on the scoring scoring. In cases that require further dispute resolution, the ODR portal will be used. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #sebi Mint Specials
Sebi’s Parrva to verify the metric claims of IAS, Algo providers of risk returns
