परिपत्र / Circular
SEBI/HO/MIRSD/MIRSD-POD/P/CIR/2025/51 April 4, 2025
To,
All Registered Credit Rating Agencies (“CRAs”)
All Registered Investment Advisers (“IAs”)
All Registered Research Analysts (“RAs”)
All Registered Stock Brokers (“SBs”)
All Recognised Stock Exchanges (“SEs”)
All Recognised Clearing Corporations (“CCs”)
All Recognised Depositories
Association of Mutual Funds in India (“AMFI”)
Madam/Sir,
Subject: Recognition and operationalization of Past Risk and Return
Verification Agency (PaRRVA)
Background
1. Regulation 16D and 16E of the ‘Securities and Exchange Board of India
(Intermediaries) Regulations, 2008’ (“Intermediaries Regulations”), provide for
verification of risk and return metrics by a Past Risk and Return Verification Agency
(“PaRRVA”). Accordingly, in terms of the aforesaid regulations, claims may be
made by IAs, RAs, Algo providers on-boarded by Stock Brokers and empaneled
with a recognized Stock Exchange (“SE”), and intermediaries permitted to provide
the services of IA, RA and Algorithmic Trading (“regulated persons”), in terms of
risk and return metrics verified by PaRVVA.
2. A CRA may be recognized as a PaRRVA, in terms of Regulation 12A of the ‘SEBI
(Credit Rating Agencies) Regulations, 1999’ (“CRA Regulations”) read with
Regulation 16E of the Intermediaries Regulations. Such CRA shall engage with a
recognized SE which will serve as PaRRVA Data Centre (“PDC”). Suitable
enablement has been made in Regulation 38B of the ‘Securities Contracts
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(Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018’
(“SECC Regulations”).
3. PaRRVA-PDC shall have principal and agent relationship wherein PaRRVA will
avail the services of PDC for verification of risk-return metrics. However, the
complete responsibility for the verification work shall lie with PaRRVA.
Eligibility Criteria for PaRRVA
4. The eligibility criteria for a CRA for recognition as PaRRVA shall be as under (as
on the date of application for recognition as PaRRVA):
(i) Number of years of existence of the CRA should be minimum 15 years;
(ii) Minimum net worth of the CRA should be INR 100 crores;
(iii) Number of issuers which have obtained ratings of listed or proposed to be
listed debt securities from the CRA should be 250 or more; and
(iv) CRA should have Investor grievance redressal mechanism including Online
Dispute Resolution (“ODR”) Mechanism;
Eligibility Criteria for PDC
5. The eligibility criteria for a SE to act as PaRRVA Data Centre (“PDC”) shall be as
under (as on the date of agreement with associated CRA for acting as PDC):
(i) Number of years of existence of the SE should be minimum 15 years;
(ii) Minimum net worth of the SE should be INR 200 crores;
(iii) The SE should have nation-wide terminals;
(iv) SE should have Investor grievance redressal mechanism including Online
Dispute Resolution (“ODR”) Mechanism.
Recognition process
6. SEBI shall call for application for interest from all SEBI registered CRAs.
Recognition as PaRRVA shall be a two stage process - first being in-principle
approval, followed by final recognition.
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7. Eligible CRAs desirous of being recognised as PaRRVA shall enter into an
agreement with an eligible SE to act as PDC and submit its application along with
the consent of the concerned SE to SEBI.
8. Upon receipt of application from eligible CRA(s), the eligible applicant CRA(s) shall
be granted in-principle approval for recognition as PaRRVA based on the
satisfaction of eligibility criteria. Such applicant(s) shall be required to set up
necessary infrastructure and verification system (technology, server, website, API
connectivity, processes, etc.) within three months from the date of receipt of in-
principle approval.
9. Prior to the grant of final recognition, a pre-recognition site visit shall be conducted
by SEBI to assess the implementation of systems and processes of the PaRRVA
and the PDC. Further, the concerned CRA and SE shall:
i. Ensure that the systems and processes are compliant with specified
Cybersecurity and Cyber Resilience Framework (“CSCRF”);
ii. Carry out systems and process audit by an auditor empaneled with a
recognised SE;
iii. Provide an auditor certificate to SEBI to its satisfaction, confirming that the
systems and processes are adequate and appropriate to carry out the
proposed activities of PaRRVA and PDC.
10. On satisfaction that the applicant CRA and related SE has put in place appropriate
and adequate systems and processes and subject to compliance with all necessary
requirements, SEBI shall grant final recognition to the concerned CRA as PaRRVA.
SEBI while granting recognition and during the currency of the recognition, may
also impose conditions, as may be deemed fit, in the interest of investors in the
securities market.
Operationalization of PaRRVA – on ‘pilot basis’ for two months
11. Pursuant to grant of recognition as PaRRVA, the concerned CRA and SE shall
initiate the verification services of risk-return metrics in respect of services of
regulated persons, on a pilot basis for a period of two months. The pilot period may
be extended by SEBI on such terms and conditions as may be prescribed.
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12. During the pilot period, relevant fine-tuning (if required) shall be carried out to
ensure a stable technological system and efficient and streamlined processes.
13. PaRRVA shall seek feedback from regulated persons while implementing this
process during the pilot period. The verified risk and return metrics shall not be
made available to the public during the pilot period.
14. After the pilot period, based on the assessment of the Oversight Committee1 and
subject to relevant changes in the operational framework (if required), PaRRVA
shall commence providing its services to the regulated persons and the investor in
general.
Methodology for verification of risk-return metrics
15. A CRA, interested to seek recognition as PaRRVA shall develop the verification
methodology and verification system, in line with the recommendations of the
technical group2 initially and by the Oversight Committee on ongoing basis.
Roles and responsibilities of PaRRVA
16. The roles and responsibilities of PaRRVA shall be broadly as under:
(i) Defining methodology for computation of risk-return metrics;
(ii) Formulating verification and operational workflow including data points to be
obtained from concerned regulated persons;
(iii) Preparation of Business Requirement Document (“BRD”) for development
of verification system and conducting User Acceptance Testing (“UAT”);
(iv) Entering into agreements with the clients;
(v) Entering into tri-partite agreements/multi-lateral agreements as may be
required, with PDC, MIIs and other agencies providing critical data required
for verification process;
1 Constitution of the committee has been discussed in subsequent section of this circular
2 A technical group comprising of representatives from Market Infrastructure Institutions (“MIIs”), CRAs, stock
brokers, mutual funds, IAs, RAs, etc., was constituted by SEBI to propose the operational framework for
verification of risk-return metrics.
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(vi) Addressing and resolving queries/grievances from investors, clients/
regulated persons;
(vii) Handling disputes related to the verification process;
(viii) Establishing connectivity with PDC for receiving verified risk-return metrics
for display on its website and for sharing with the clients / investors;
(ix) Storing and managing the verified risk-return metrics with appropriate
information security standards; and
(x) Making the verification methodology available to public on its website.
Roles and responsibilities of PDC
17. The roles and responsibilities of the PDC shall be broadly as under:
(i) Development and hosting of verification system;
(ii) Establishing connectivity with MIIs, regulated persons, or any other agency
for sharing of data;
(iii) Processing of the verification requests based on the methodology defined
by the PaRRVA;
(iv) Storing and managing the data received/processed with appropriate
information security standards;
(v) Maintaining confidentiality and ownership of the data received for the
verification process as well as processed data shared with PaRRVA;
(vi) Establishing connectivity with PaRRVA for sharing output post verification
process;
(vii) Providing support to PaRRVA to handle and address investors’
queries/grievances; and
(viii) Conducting half-yearly internal audits on process and information security
and share the reports with PaRRVA.
18. While Para 16 and 17 above provide broad areas of roles and responsibilities of
PaRRVA and PDC, the list is not exhaustive. The roles and responsibilities may
further evolve over a period of time and shall be appropriately documented by
PaRRVA and PDC after due consultation with SEBI.
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Contours of the verification process under PaRRVA-PDC framework
19. The verification process shall be carried out by PDC as an agent of PaRRVA being
the Principal. PDC shall receive the input data for verification process from
regulated persons, MIIs and AMFI (for Mutual Funds NAV data) through
Application Programming Interface’ (“API”)/ file upload etc. on real time basis, at
the end of the day or any other frequency, based on the nature of data and
services.
20. PDC shall carry out the verification process in terms of the methodology specified
by PaRRVA and provide the verified output, in pre-defined format, to the PaRRVA
through API or any such other means for better dissemination. PaRRVA shall
display the verified risk-return metrics on its website that shall be accessible to
regulated persons and investors in general. The contours of the verification
process of risk-return metrics shall be broadly as specified at Annexure – A.
Maintenance of records
21. The PaRRVA shall arrange to keep and maintain records, for a minimum period of
five years, including inter-alia:
(i) all the verified outputs received from PDC;
(ii) all the verified risk-return metrics disseminated to/ shared with its clients/
regulated persons / investors.
22. In the event of the end of recognition of a CRA as PaRRVA, it shall be required to
store and maintain the above data for the applicable period or handover to another
agency in retrievable form to ensure continuity of availability of data for regulatory
purposes.
23. The PDC shall keep and maintain, for a minimum period of five years, all the input
data received from MIIs, regulated persons, or any other agency as well as the
verified output shared with the PaRRVA. In the event a recognized SE ceases to
serve as a PDC, it shall be required to store and maintain the above data for the
applicable period or handover to another agency in retrievable form to ensure
continuity of availability of data for regulatory purposes.
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Manner of presentation of verified risk-return metrics
24. In terms of the Regulation 16E (2) of the SEBI (Intermediaries) regulations, 2008,
any claim in the form of verified risk-return metrics shall be made by the regulated
persons in the manner specified by SEBI. Accordingly, certain guidelines shall be
required to be adhered to while displaying such metrics or making any claims using
such metrics to ensure holistic and proper presentation. These guidelines inter alia
prohibit selective display of verified returns of any specific product or service,
selection of arbitrary dates/time-periods to present favorable outcome and any
claim using risk-returns metrics giving out a selective presentation of risk-returns
metrics or amounting to willful omission of certain specific risk-return metrics. In
case of any violations by the regulated persons in this regard, appropriate
enforcement action may be undertaken in terms of Chapter V of the SEBI
(Intermediaries) Regulations, 2008.
25. The guidelines for presentation of verified risk-return metrics shall be as detailed
in Annexure –B.
Disclaimers in respect of verified risk-return metrics
26. Any display of risk-return metrics verified by PaRRVA and any claim using such
metrics shall be accompanied with appropriate disclaimers. These shall inter alia
include disclaimers specifying that past performance is not indicative of future
results, verified returns do not guarantee any assured returns, the information
about risk-return metrics should not be used as singular basis for investment
decisions and the verified return may be different from the actual return accrued to
a client. A list of such disclaimers is provided at Annexure –C.
Oversight Committee for monitoring the activities of PaRRVA and PDC
27. PaRRVA shall constitute an oversight committee within 2 months of the date of in-
principle approval given by SEBI, to oversee the activities of the CRA as PaRRVA
and the SE as PDC. The constitution of the oversight committee shall be as follows:
(i) It shall primarily comprise of non-independent directors (excluding
Managing Director) of the PaRRVA and PDC, public interest directors of
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PDC, representatives of intermediaries and at least one member from a
SEBI recognised investor association.
(ii) The Chairperson of the Committee shall be from one of the public interest
directors of the PDC.
(iii) The combined number of members who are public interest directors of PDC
and members who are representatives of regulated persons shall not be
less than the combined number of non-independent directors of PaRRVA
and PDC.
28. Broad details of the functions to be carried out by the Committee are provided at
Annexure – D.
Inspection and enforcement in respect of PaRRVA
29. SEBI may undertake inspection of the CRA recognized as PaRRVA and the
recognized SE serving as PDC, in respect of the activities of PaRRVA/PDC.
30. Further, SEBI may undertake appropriate enforcement proceedings against such
CRA/ SE in terms of Regulation 33 of the SEBI (Credit Rating Agencies)
Regulations, 1999, Chapter V of the SEBI (Intermediaries) Regulations, 2008,
Regulation 49 of the Securities Contracts (Regulation) (Stock Exchanges And
Clearing Corporations) Regulations,2018 or any other relevant
act/regulations/circulars etc.
31. SEBI may also commission, suo-moto, inspection, audit of books of accounts,
processes and systems of the PaRRVA and the PDC at such intervals or on such
occasions with such scope as deemed fit. The charges, as applicable, for such
inspection/audit may be recovered from PaRRVA and PDC.
Obligation to share information with PDC
32. In order to carry out the verification process of risk-return metrics, the PDC would
require a number of reports/data from various entities such as MIIs (Depositories,
Clearing Corporations, Stock Exchanges), IAASB, RAASB, Association of Mutual
Funds in India (AMFI), regulated persons etc. In this regard, it shall be the
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responsibility of all MIIs, IAASB, RAASB, AMFI and regulated persons, to share
accurate, complete and timely data/information with the PDC and make necessary
arrangements for the same.
33. The mode and frequency of the data sharing shall be as prescribed by
PaRRVA/PDC.
34. PaRRVA, PDC and all the data sharing entities shall enter into tri-partite
agreement/multi-lateral agreement as may be required, for sharing of data.
Dispute resolution and grievance handling
35. In case of any disputes between PaRRVA and the regulated persons availing its
services, the same shall be taken up through the mechanism provided by PaRRVA.
PaRRVA shall constitute such mechanism for dispute resolution within two months
of in-principle approval for recognition as PaRRVA. The mechanism shall also
provide opportunity for appeal with the Oversight Committee of the PaRRVA for
dispute resolution.
36. If no resolution is reached at the level of the Oversight Committee, the PaRRVA or
the regulated person, as per the agreed terms and conditions of the services, may
approach Online Dispute Resolution (“ODR”) portal3.
37. Investors’ complaints against any intermediary with respect to the PaRRVA verified
risk or return metrics or investors’ complaints against PaRRVA shall be dealt
through SCORES and any such disputes through the ODR portal.
38. In the likelihood of dispute between PaRRVA and PDC, the same shall be resolved
by the Oversight Committee.
Review of operational framework for verification of risk-return metrics
39. Based on the on-ground experiences and feedback from the stakeholders, a review
of the specified operational framework for verification of risk-return metrics, if
3 URL -https://smartodr.in/login
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required, shall be done as per the process given below under the overall
supervision of the Oversight Committee:
(i) PaRRVA may propose a revision in any aspects of the operational
framework such as types of permissible claims, calculation methodology,
presentation standards etc.
(ii) Such proposed changes in the operational framework, if required, shall be
introduced in consultation with Industry Standards Forum (ISF) for the
concerned intermediary. Changes as undertaken shall be implemented in
consultation with SEBI.
Consequential changes to regulatory provisions governing IAs/RAs and
Stock Brokers
40. As per para 10.1(c)(xii) of the Master Circular for Investment Advisers dated May
21, 2024 and para 8.1(c)(xii) of the Master Circular for Research Analysts dated
May 21, 2024 respectively, IAs and RAs are prohibited from making a reference to
their past performance in their advertisements.
41. In order to enable IAs and RAs to avail the services of PaRRVA and make claims
in their advertisements using risk-return metrics verified by PaRRVA, it has been
decided to amend the above-mentioned clauses of the Master Circular for IAs and
RAs. Accordingly, the paragraph 10.1(c)(xii) of the Master Circular for Investment
Advisers dated May 21, 2024, stands amended as under:
“Reference to past performance or risk-return metrics in respect of the services of
Investment Adviser unless such risk-return metrics are verified by Past Risk and
Return Verification Agency (PaRRVA) and claims using such metrics are made in
the manner specified by SEBI.”
Similarly, paragraph 8.1(c)(xii) of the Master Circular for Research Analysts dated
May 21, 2024, stands amended as under:
“Reference to past performance or risk-return metrics in respect of the services of
Research Analyst unless such risk-return metrics are verified by Past Risk and
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Return Verification Agency (PaRRVA) and claims using such metrics are made in
the manner specified by SEBI.”
42. Paragraph 58.13. of the Master Circular for Stock Brokers dated August 09, 2024,
prohibits Stock Brokers who provide services relating to algorithmic trading, from
directly or indirectly making any reference to the past or expected future
return/performance of the algorithm; and/or directly or indirectly associating with
any platform providing any reference to the past or expected future
return/performance of the algorithm.
43. In order to enable the Stock Brokers to make reference to the verified risk-return
metrics pertaining to algorithmic trading, it has been decided to amend the
abovementioned provisions of the Master Circular for Stock Brokers by way of
insertion of Para 58.14, as under:
“The above restrictions mentioned in para 58.13 shall not apply in case reference
is made to risk-return metrics of algorithms verified by Past Risk and Return
Verification Agency (PaRRVA), in the manner specified by SEBI.”
44. The circular shall come into force with immediate effect.
45. This circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 read with
(i) Regulation 16D, 16E and 16F of the Intermediaries Regulations;
(ii) Regulation 12A of the CRA Regulations;
(iii) Regulation 38B of the SECC Regulations;
(iv) Regulation 33 of the Securities and Exchange Board of India (Research
Analysts) Regulations,2014;
(v) Regulation 29 of the Securities and Exchange Board of India (Investment
Advisers) Regulations,2013; and
(vi) Regulation 30 of the Securities and Exchange Board of India (Stock
Brokers) Regulations,1992;
to protect the interests of investors in securities market and to promote the
development of, and to regulate the securities market.
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46. This circular is available on SEBI website at www.sebi.gov.in under the category
"Legal > Circulars.
भवदीय | Yours faithfully,
आराधना वर्ाा | Aradhana Verma
र्हाप्रबंधक | General Manager
दरू भाष | Telephone: +91-22-26449633
ईर्ेल | E-mail: aradhanad@sebi.gov.in
Annexure A – Verification process under PaRRVA-PDC framework
Annexure B – Guidelines for presentation of verified risk-return metrics
Annexure C – Disclaimers in respect of verified risk-return metrics
Annexure D – Functions of the Oversight Committee for monitoring the activities
of PaRRVA and PDC
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Annexure – A to Circular dated April 4, 2025
Verification process under PaRRVA-PDC framework
In terms of Para 3 and Para 19 of the above mentioned Circular, PaRRVA shall
be responsible for the verification work with PDC as its agent. The broad outline
of the verification process of risk-return metrics shall be as under:
(i) PDC shall receive and store all the required data for verification from MIIs
(i.e. exchanges, clearing corporations, and depositories), AMFI (NAVs of
MF schemes) and regulated persons (e.g. advices/recommendation of
IAs/RAs) through API/ file-upload, etc.
(ii) IAs/RAs will share their advices/recommendations to PDC either at the time
of giving advice/recommendation to clients or at the end of the day,
depending on the type of recommendations. PDC shall provide a facility for
receipt of such data through ‘Application Programming Interface’
(“API”)/upload etc.
(iii) The verification system i.e. server, technology etc., shall reside with the
PDC, PaRRVA and PDC shall coordinate during the development process
of the verification system. PaRRVA shall specify the verification
methodology, required fields for verified output, etc. to PDC.
(iv) PDC shall consume the input data received from MIIs, regulated persons
etc., and provide the verified output in defined format to the PaRRVA
through API or any such other means for better dissemination.
(v) PaRRVA shall display the verified risk-return metrics on its website in
specified manner along with adequate and complete
disclaimers/disclosures. Regulated persons and investors will have access
to verified metrics on the website of PaRRVA.
PaRRVA and PDC shall create a comprehensive document detailing the verification
process, including those that may not be in the above list, under the overall oversight
and guidance of the Oversight Committee.
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Annexure – B to Circular dated April 4, 2025
Guidelines for presentation of verified risk-return metrics
A. In terms of Para 24 of the above mentioned Circular, the following guidelines
must be adhered to, in order to ensure holistic representation and prevent
misrepresentation:
(i) Selective display of PaRRVA verified returns of any specific product or
service shall not be permitted. For example, an IA/RA who has given
advice/recommendation of multiple portfolios/stocks/derivatives during a
specific period cannot make a statement displaying standalone verified risk-
return metrics of one specific portfolio/stock for the said period. Similarly, a
Stock Broker/Algo Provider who has applied to PaRRVA for verification of
multiple Algos cannot make a statement displaying standalone verified risk-
return metrics of one specific algo.
(ii) Any claim using risk-return metrics of one of the PaRRVA verified
portfolio/algo shall always be accompanied with information about the total
number of portfolios/ algos verified by the PaRRVA, during the relevant
period, and shall also refer to the range of positive/negative returns and
other risk-return metrics pertaining to those portfolios/algos.
(iii) Any claim in respect of risk-return metrics pertaining to investment
advice/recommendation of single stocks/derivatives/intra-day
advice/recommendation shall be holistic and shall refer to the number and
range of positive/negative returns and other risk-return metrics pertaining to
all such advices/recommendations.
(iv) No claim in respect of risk-return metrics pertaining to investment
advice/recommendation of single stocks/derivatives/intra-day
advice/recommendation shall contain name of any specific stock/derivative
instrument.
(v) The verified risk-return metrics for advices/recommendation of IAs/RAs or
algorithmic trading shall be for specified periods. There shall be no arbitrary
selection of dates or time-periods to present favourable outcome.
(vi) For claims of risk-return metrics in physical form i.e. through pamphlet,
booklet or other printed material, such document must contain overall
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summary of risk-return metrics pertaining to the concerned regulated person
as provided by PaRRVA.
(vii) All claim statements, whether electronic or physical, of regulated persons
must contain a link/QR code providing details of overall summary of risk-
return metrics on the website of PaRRVA.
(viii) For services of IAs/RAs and those persons permitted to provide such
services, risk-return metrics pertaining to advice/recommendation shall be
allowed to be showcased; however, client-specific claims of risk-return shall
not be allowed.
(ix) Any claim using risk-returns metrics, which gives a selective representation
of risk-returns metrics or amounts to willful omission of certain specific risk-
return metrics shall not be permitted.
(x) Any display of risk-return metrics/claim using such metrics shall be
accompanied with specified disclaimers/disclosures.
B. While the above are broad guidelines, PaRRVA and PDC shall document and
submit to SEBI the comprehensive list of applicable conditions to ensure that
there is no misuse of verified risk-return metrics and no impression given to
investors/regulated persons which is not intended. Accordingly, as and when
required, revised guidelines for presentation of verified risk-return metrics shall
be specified by SEBI.
C. These conditions shall also form part of the basic contract between PaRRVA
and its clients.
D. Systems and processes for addressing the consequences of such a breach of
contract shall be laid down by the PaRRVA.
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Annexure – C to Circular dated April 4, 2025
Disclaimers in respect of verified risk-return metrics
In terms of Para 26 of the above mentioned Circular, the disclaimers for display of
risk-return metrics is as under:
All risk-return metrics verified by PaRRVA as well as any claim/ display of such
verified risk-return metrics by regulated persons or their agents shall be
accompanied with the following disclaimers:
(i) All the information contained herein is for reference purpose only and must
not be used on singular basis for any investment decision.
(ii) The information contained in this document is not intended to provide any
professional advice or any advice/suggestion to subscribe to any
intermediary.
(iii) While verification of risk-returns metrics by PaRRVA is based on the data
submitted by the regulated persons or their agents, however, verification of
risk-returns metrics by PaRRVA must not be considered as an assurance of
compliant status of such regulated persons with the rules, regulations or
other regulatory guidelines governing them.
(iv) While verified risk-returns metrics represent historical risk-returns, there is
no guarantee that subscribing to such services of advice/recommendation
will accrue similar risk-returns in the future. Factors such as market volatility,
individual investment strategies and economic conditions can significantly
affect investment outcomes. Therefore, past performance is not indicative
of future results and the clients should exercise their discretion and seek
professional financial advice tailored to their specific circumstances.
(v) PaRRVA verified returns in no way guarantees any assured returns in
future.
(vi) While verified returns by the PaRRVA indicate the return that the client
would have accrued if he/she had subscribed to the underlying
advice/recommendation; however, due to various factors such as market
conditions, prevalent prices etc. at the time of execution of the
advice/recommendation, the verified return may be different from the actual
return accrued to a client.
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While the above may not be an exhaustive list, PaRRVA and PDC may incorporate
such clauses as deemed fit and intimate the same to their clients.
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Annexure – D to Circular dated April 4, 2025
Functions of the Oversight Committee for monitoring the activities of
PaRRVA and PDC
In terms of Para 28 of the above mentioned Circular, Oversight Committee
(“Committee”) shall have following broad functions:
(i) The committee shall approve the internal policy and mechanism put in place
by the CRA recognized as PaRRVA and the recognized SE serving as PDC
for ensuring data privacy and confidentiality in respect of its functioning as
PaRRVA and PDC.
(ii) The committee shall commission half-yearly audit of PaRRVA and PDC to
verify whether PaRRVA/PDC is functioning as per the published verification
methodology and to examine the systems/process put in place to ensure
data privacy and data protection.
(iii) The committee shall submit its recommendations to the Boards of the
PaRRVA and PDC for strengthening of systems/process of the
PaRRVA/PDC if required, taking corrective measures to address
deficiencies if any, etc. The board of the PaRRVA shall refer the
recommendations of the committee to SEBI along with details of the
remedial actions if any, taken by the PaRRVA/PDC.
(iv) Any revision to any aspects of the operational framework such as types of
permissible claims, calculation methodology, risk-return presentation
standards etc, proposed by a CRA recognised as PaRRVA, shall be
discussed and approved by the oversight committee. Thereafter, such
proposed changes in the operational framework may be introduced in
consultation with Industry Standards Forum (ISF) for the concerned
regulated persons and SEBI.
(v) The oversight committee shall monitor the charges being levied by the
PaRRVA and endeavor to ensure that the verification services of risk-return
metrics remain reasonable to the clients of PaRRVA.
(vi) The committee shall also serve as primary forum for resolution of disputes
between PaRRVA and its clients availing the verification services.
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During the pilot period, the Oversight Committee may document its functions and
scope in finer details. As the PaRRVA-PDC framework is an evolving concept
based on the experience/learnings during the said period, the Oversight Committee
may appropriately decide its scope.
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