Description
NSE notifies members about the operationalisation of PaRRVA, with Care Ratings Limited granted recognition and NSE acting as PaRRVA Data Centre. IAs/RAs must enroll by August 3, 2026 to continue communicating certified past performance data to clients.
Summary
NSE has notified all trading members about the operationalisation of the Past Risk and Return Verification Agency (PaRRVA), pursuant to SEBI circular No. HO/38/14/(4)2026-MIRSD-POD/I/10557/2026 dated April 29, 2026. Care Ratings Limited (CRL) has been granted recognition as PaRRVA, with NSE acting as the PaRRVA Data Centre (PDC). Following a successful pilot phase, CRL began providing services on a regular basis from May 04, 2026.
Key Points
- Care Ratings Limited (CRL) has been recognised as PaRRVA; NSE serves as the PaRRVA Data Centre (PDC)
- PaRRVA regular services commenced on May 04, 2026 after successful pilot completion
- Investment Advisers (IAs) and Research Analysts (RAs) wishing to communicate certified past performance data must enroll with PaRRVA by August 03, 2026
- After May 03, 2028, only PaRRVA-verified risk and return metrics may be communicated to clients; pre-operationalisation past performance data will no longer be permitted
- The recognition of CRL as PaRRVA is valid until revoked or suspended by SEBI
- NSE helpdesk available at 1800 266 0050 (IVR option 3) or memcompliance_support@nse.co.in for support
Regulatory Changes
The framework for PaRRVA is established under:
- SEBI circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/51 dated April 4, 2025 (original framework)
- Regulation 12A of the SEBI (Credit Rating Agencies) Regulations, 1999
- Regulation 16E of the SEBI (Intermediaries Regulations), 2008
- SEBI circular HO/38/12/11(1)2025-MIRSD-POD/I/73/2025 dated October 30, 2025 (interim arrangement for pre-PaRRVA period data)
PaRRVA is now operational, replacing the interim arrangement that allowed IAs/RAs to communicate certified past performance data from the pre-PaRRVA period under specific conditions.
Compliance Requirements
- Investment Advisers (IAs) and Research Analysts (RAs): Must enroll with PaRRVA by August 03, 2026 to retain the ability to communicate certified past performance data to clients (including prospective clients)
- Post-enrollment: Only PaRRVA-verified risk and return metrics may be communicated after May 03, 2028
- Stock Brokers, Stock Exchanges, Clearing Corporations, Depositories, AMFI, Algo Providers: Must take note of the operationalisation and associated regulatory framework
- Credit Rating Agencies: Should be aware of the recognition framework under which CRL is now operating as PaRRVA
Important Dates
| Date | Event |
|---|---|
| April 4, 2025 | SEBI issued original PaRRVA framework circular |
| October 30, 2025 | SEBI issued interim arrangement for pre-PaRRVA past performance data |
| April 29, 2026 | SEBI issued current operationalisation circular |
| May 04, 2026 | CRL (PaRRVA) began regular services post pilot phase |
| May 05, 2026 | NSE circular issued to trading members |
| August 03, 2026 | Deadline for IAs/RAs to enroll with PaRRVA |
| May 03, 2028 | Deadline after which only PaRRVA-verified metrics may be used; pre-PaRRVA past performance data no longer permitted |
Impact Assessment
This circular has significant compliance implications for Investment Advisers and Research Analysts across India:
- IAs and RAs face a firm enrollment deadline of August 03, 2026. Failure to enroll means they cannot share certified past performance data with clients, directly impacting their marketing and advisory communications.
- Long-term impact: From May 2028, all past performance claims must be PaRRVA-verified, representing a fundamental shift in how performance data is validated and communicated in the advisory industry.
- Care Ratings Limited gains a new regulated role as PaRRVA, expanding its business scope beyond credit ratings.
- NSE takes on a new infrastructure role as the PaRRVA Data Centre, deepening its involvement in regulatory compliance infrastructure.
- The change is designed to improve transparency and standardisation in performance reporting, reducing the risk of misleading past performance claims to retail investors.
Impact Justification
Establishes mandatory enrollment deadline (August 3, 2026) for IAs/RAs to communicate certified past performance data, and sets a sunset date (May 3, 2028) after which only PaRRVA-verified metrics may be used. Non-compliance disqualifies IAs/RAs from sharing past performance data with clients.