Stock Market: Stock market regulator, Securities and Exchange Board of India (SEBI) has taken another good step for the benefit of common investors. On Monday, SEBI launched a new ‘Past Risk and Return Verification Agency’ to prevent mis-selling of investment products in the market and improve monitoring through standardized reporting. SEBI Chairman Tuhin Kant Pandey said that this new agency is a technology-based reform aimed at bringing credibility and consistency in reporting through digital audit trails.

What is PaRRVA?

SEBI has taken this step keeping in mind the increasing number of financiers and unregistered entities. This is because their investment tips often lure investors with inflated or fraudulent returns. With the introduction of PaRRVA, any registered investment advisor, research analyst or broker will now have to verify his claims of returns on shares through Care PaRRVA before making any such claims. This means that the claims will be verified first and only then the advertisement will be published. This will make it difficult to promote return-based investments without first verification.

What will be the benefit of this?

The game of fake advisory services has been going on in the stock market for years. Many unregistered advisors and finfluencers cheat people by claiming huge returns. However, it will not be easy to do this now. If SEBI’s new system is successful, fraudulent claims about returns on shares will be detected immediately.

SEBI had asked for this right from the government

In early 2025, Reuters reported that SEBI was seeking greater powers from the government to remove unauthorized financial advice from internet media platforms like WhatsApp and Telegram and access their call records to investigate market violations.

National Stock Exchange (NSE) MD and CEO Ashish Kumar Chauhan said that Parva is an important step taken by SEBI towards transparency, standardization in performance disclosures and strengthening investor confidence.

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