SEBI is pushing investment advisers and research analysts to adopt the Past Risk and Return Verification Agency (PaRRVA) framework for performance reporting. However, adoption is slow as many firms struggle with high annual compliance fees. All intermediaries must transition to this verified system for client communications by May 2028 to avoid potential regulatory issues.
The Securities and Exchange Board of India (SEBI) is increasing its efforts to ensure market intermediaries adopt the Past Risk and Return Verification Agency (PaRRVA) platform. This framework, which became operational in May 2026, was created to improve transparency in the financial markets by having an independent agency verify performance claims made by investment advisers, research analysts, and algorithmic trading service providers.
The core objective is to prevent the spread of misleading information about investment returns. By mandating that these intermediaries use a standardized, verified audit trail, the regulator aims to ensure that investors have access to accurate, consistent data before they make any investment decisions. The National Stock Exchange (NSE) serves as the data center for the platform, while CARE Ratings Limited has been appointed as the agency responsible for the verification process.
Despite the push from the regulator, the adoption of the PaRRVA framework has been sluggish. Industry participants have highlighted high compliance costs as the primary obstacle preventing widespread registration. Reports suggest that annual compliance fees can reach up to ₹1 crore for qualified stock brokers, while non-qualified members may face costs around ₹40 lakh. For smaller research and advisory firms, these expenses represent a significant financial burden, which has slowed the enrollment process compared to the large number of entities registered with the regulator.
For investors and market participants, the regulatory timeline is the most important factor to track. While the platform is currently live, the mandate is set to become stricter over time. SEBI has established a deadline of May 3, 2028, by which all intermediaries must ensure their client communications and performance metrics are verified through the PaRRVA system. Firms that fail to complete this transition risk losing the ability to display their historical performance data, which could affect their marketing and client acquisition efforts.
As the deadline approaches, the pressure on intermediaries to comply is expected to rise. The challenge for these firms will be to balance these increased operational costs with their business models. Investors should monitor how firms adapt to these expenses and whether the shift to verified reporting leads to more standardized performance claims across the advisory and research industry. The next key monitorable will be the progress of registration numbers as firms move closer to the 2028 compliance deadline.