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Most investors’ biggest challenge is deciding who is trustworthy. Who is genuinely guiding you, and who is simply selling big promises? Whose track record is real, and whose claims are just crafted for marketing? To solve this long-standing worry, SEBI has introduced a powerful new system—PaRRVA—designed to protect investors by truly understanding their needs.
This system, for the first time, will give investors independently verified, fully certified, and reliable performance data. This step is not just a rule; it is a relief for millions of Indians who are put at risk by a lack of correct information.
How Will PaRRVA Change the Entire Investment Landscape?
PaRRVA (Past Risk and Return Verification Agency) is an independent agency that will verify the truthfulness of past return and risk claims made by SEBI-regulated intermediaries operating in the market.
This means that now:
- Investors will not have to rely on hype, confusion, or unverified claims.
- They will be able to make informed decisions by looking at real data.
- Transparency will increase in the market, and false claims will be completely stopped.
India is, for the first time, building a platform that the world may recognize as a new global benchmark.
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The Alarming Level of Investor Knowledge—SEBI Survey Reveals the Reality
A recent SEBI survey has revealed a very important truth:
- Only 36% of Indian investors have adequate market knowledge.
- Around 62% of new investors trust social media influencers.
- Approximately 23% of people invest without understanding the risk, driven by the desire to make quick money.
As this trend continued, the risk of false or exaggerated return claims also began to rise. In such a time, PaRRVA will act as a safety shield for investors.
SEBI’s Big Message: Investor Protection is the Highest Priority
The SEBI chief has called PaRRVA a “Pioneering Mechanism”—a system that will not only strengthen investor confidence but also promote ethics, honesty, and accountability in the financial market.
Many countries recognize the danger of unverified return advertisements, but India is the first country to establish an independent verification system to prevent it. This not only elevates investor safety to a new height but also strengthens the credibility of the Indian financial market on an international level.
PaRRVA Further Strengthens Investor Confidence
The launch of PaRRVA is the beginning of a new era of transparency for investors. Now there will be less scope for inducement by so-called market experts. Investment will be based on real, verified, and responsible data, not just hopes.
This mechanism will make India’s investment ecosystem safer, more reliable, and more respected globally.
Disclaimer:
This article has been prepared based on available official information. The information provided herein is for general informational purposes only. It is essential to consult your financial advisor before making any investment decision.
Dr. Bidyut Barun Sarmah, with 22+ years of experience in print, electronic, and digital media, holds an MA and PhD in Mass Communication and Journalism. He has worked with AIR, Doordarshan, and the Publication Division under the Ministry of Information and Broadcasting. A published author and researcher, Dr. Sarmah writes extensively in both Assamese and English. He was also awarded a prestigious fellowship by the Ministry of Culture, Government of India, for his study on journalistic literature—an achievement that highlights his depth of scholarship and contribution to media studies. At Nest of News, he leads the editorial team and contributes across diverse topics.