<ul><li>SEBI introduces framework for Past Risk and Return Verification Agency (PaRRVA) to verify risk and return metrics of financial products and services offered by intermediaries such as investment advisors, research analysts, and stockbrokers.</li><li>Verification services will be launched on a two-month pilot basis to test the system and gather feedback from stakeholders for process improvement.</li><li>Eligibility criteria for a Credit Rating Agency (CRA) to be recognized as a PaRRVA includes at least 15 years of past experience, a net worth of Rs 100 crore, and an established investor grievance redressal mechanism.</li><li>SEBI emphasizes the need for appropriate disclaimers with validated risk-return metrics, highlighting that past performance is not indicative of future results and should not be the sole basis for investment decisions.</li></ul>

SEBI Introduces Framework For Past Risk And Return Verification Agency

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