SEBI appoints Care Ratings to vet performance and risk of market stakeholders

Securities and Exchange Board of India (SEBI) appointed Care Ratings Ltd. to function as the Past Risk and Return Verification Agency (PaRRVA), according to a circular released 29, April 2026.

The agency will vet Investment advisors and research analysts for their past performance and risk, according to the PaRRVA framework. CRL will begin operations from 4, May 2026 SEBI said in the circular. This will also include stock brokers and algorithm traders.

“After two years from the date of operationalization of PaRRVA, IAs/RAs will be permitted  to  communicate/display  only  PaRRVA  verified  risk  and  return metrics and  will  not be  permitted  to  use past  performance  data related  to the  period  prior  to  the  date  of  operationalizationof  PaRRVA,  in  any communication to clients (including prospective clients),” SEBI said. IA/RA who wish to enroll for PaRRVA must do so within August 3, 2026