Description

BSE notifies Investment Advisers of SEBI's circular on the operationalisation of the Past Risk and Return Verification Agency (PaRRVA), dated April 29, 2026.

Summary

BSE has issued Notice No. 20260430-44 to disseminate a SEBI circular (HO/38/14/(4)2026-MIRSD-POD/I/10557/2026 dated April 29, 2026) regarding the operationalisation of the Past Risk and Return Verification Agency (PaRRVA). All Investment Advisers registered with BSE are directed to take note of the enclosed SEBI circular.

Key Points

  • BSE Notice No. 20260430-44 dated April 30, 2026, forwarded to all Investment Advisers
  • SEBI circular reference: HO/38/14/(4)2026-MIRSD-POD/I/10557/2026 dated April 29, 2026
  • Subject: Operationalisation of Past Risk and Return Verification Agency (PaRRVA)
  • The SEBI circular is enclosed as an Annexure to the BSE notice
  • Issued by the Membership Department, BSE

Regulatory Changes

SEBI has issued a circular to operationalise PaRRVA — the Past Risk and Return Verification Agency. PaRRVA is a regulatory mechanism designed to verify past performance claims and risk-return representations made by Investment Advisers, aimed at curbing misleading performance disclosures in the investment advisory space.

Compliance Requirements

  • All Investment Advisers registered under BSE’s Membership/Compliance framework must review the enclosed SEBI circular carefully
  • Investment Advisers should familiarise themselves with PaRRVA’s operational guidelines and any reporting or verification obligations arising from the SEBI circular
  • Advisers making past performance or risk-return claims may need to route such verifications through PaRRVA as per SEBI’s operational framework

Important Dates

  • BSE Notice Date: April 30, 2026
  • SEBI Circular Date: April 29, 2026
  • Effective/operational dates for PaRRVA: As specified in the enclosed SEBI circular (Annexure)

Impact Assessment

This circular primarily impacts registered Investment Advisers. The operationalisation of PaRRVA introduces a new compliance layer for advisers who publish or rely upon past risk and return data in their client communications. Medium-term impact includes additional verification requirements and potential changes to how advisers present historical performance. There is no direct impact on stock prices or broader market operations, but non-compliance could result in regulatory action against Investment Advisers.

Impact Justification

This circular operationalises PaRRVA, a new regulatory body affecting all Investment Advisers registered with BSE. It requires compliance attention but does not create immediate trading or market-wide disruptions.