BSE has issued Notice No. 20260504-9 dated 04 May 2026 regarding the operationalisation of the Past Risk and Return Verification Agency (PaRRVA). PaRRVA is a SEBI-mandated independent agency tasked with verifying past risk and return disclosures made by registered investment advisers (IAs) and research analysts (RAs) to ensure accuracy and prevent misleading performance claims.

Key Points

• BSE Membership and Compliance departments have jointly issued this notice to all members and relevant intermediaries.
• PaRRVA is now operational, marking a key step in SEBI’s initiative to bring accountability to past performance advertising.
• The notice includes Annexure A, which likely contains detailed operational guidelines, timelines, and compliance procedures related to PaRRVA.
• The circular is categorised under ‘Others’ in the General segment, indicating broad applicability across market participants.
• Members are advised to review the annexure for specific obligations and registration/reporting requirements.

Regulatory Changes

• PaRRVA becomes the authorised verification body for past risk and return data published by investment advisers and research analysts.
• Intermediaries making past performance disclosures will be required to route such disclosures through or get them verified by PaRRVA.
• This operationalisation follows SEBI’s earlier circulars mandating the creation of such an agency to curb misleading performance advertisements in the securities market.

Compliance Requirements

• All SEBI-registered investment advisers and research analysts must ensure that past risk and return data disclosed to clients or in advertisements is verified through PaRRVA.
• BSE members who act as IAs or RAs, or who deal with such intermediaries, should familiarise themselves with PaRRVA’s operational framework as detailed in Annexure A.
• Members should update internal compliance policies to incorporate PaRRVA verification requirements into their disclosure and reporting processes.
• Non-compliance with PaRRVA verification norms may attract regulatory action under SEBI’s IA and RA regulations.

Important Dates

• Notice Date: 04 May 2026
• Effective/operational date of PaRRVA: As specified in Annexure A (refer to the PDF for exact timelines).
• Compliance deadlines for registration or initial submissions to PaRRVA: Refer to Annexure A.

Impact Assessment

The operationalisation of PaRRVA represents a significant structural change in how past performance claims are regulated in India’s securities market. Investment advisers and research analysts will face increased scrutiny and must adapt their disclosure practices to meet PaRRVA’s verification standards. For BSE members operating in an advisory capacity, this adds a new layer of operational compliance. The broader market impact is positive — investor protection is strengthened by reducing the risk of misleading performance advertisements. Firms with robust data infrastructure will adapt more easily, while smaller IAs and RAs may need to invest in systems to comply with verification requirements.