Mumbai: Securities and Exchange Board of India (SEBI) has rolled out the Past Risk and Return Verification Agency (PaRRVA) mechanism to showcase verified past returns to investors.
This was launched in partnership with the National Stock Exchange (NSE) and CARE Ratings.
The credit rating agency acts as PaRRVA, while NSE acts as PaRRVA Data Centre.
Together, they will independently verify past returns, using a standardised methodology and will be monitored by an oversight committee.
Initially, it will be operationalised for intermediaries who provide algorithmic trading services.
Only 36 per cent of investors possess adequate knowledge about the securities market, making them vulnerable to unverified claims. Nearly 62 per cent of investor decisions are based on influencer recommendations.
Discussion about this post