New Delhi, April 15 -- In a significant move towards enhancing transparency and accountability in the Indian securities market, the Securities and Exchange Board of India (Sebi) issued a circular on 4 April, outlining the regulatory framework for the Past Performance and Risk-Return Verification Agency (PaRRVA).

This framework introduces a mechanism to verify the past performance claims made by investment advisors (IAs), research analysts (RAs), and algo providers (collectively, Regulated Persons).

Under the new framework, a registered credit rating agency will be designated as PaRRVA, an independent body responsible for verifying the risk-return metrics of investment advice, strategies, and model portfolios before these are publicly di...