Sebi comes out with interim arrangement for IAs, RAs to share past performance

Markets regulator Sebi on Thursday came out with an interim arrangement for Investment Advisers (IAs) and Research Analysts (RAs) to share their past performance data until the new Past Risk and Return Verification Agency becomes fully operational.

Under this arrangement, IAs and RAs can provide certified past performance data, verified by a member of ICAI or ICMAI, but only if a client specifically requests it. This information would be shared privately on a one-to-one basis, not on websites or public platforms.

''Considering the representation of the industry, as an interim arrangement, it has been decided-- IAs/RAs may provide past performance data certified by a member of ICAI/ICMAI to a client (including prospective client) only on specific request of such client,'' Sebi said in its circular.

Once Past Risk and Return Verification Agency (PaRRVA) is operational, IAs and RAs must enrol with it within three months to continue sharing performance data. After two years, only PaRRVA-verified data can be shared.

All such communications must include a mandatory disclaimer stating that the data is not verified by PaRRVA and may not be comparable across firms, Sebi said.

This move allows advisers and analysts to show their track record responsibly while ensuring investor protection until PaRRVA becomes fully operational.

The decision came after industry groups requested Sebi to allow IAs and RAs to also share their past performance data with clients for the period before PaRRVA becomes operational.

In April 2025, Sebi announced plans to set up the Past Risk and Return Verification Agency to verify and display the performance of investment advisers and research analysts going forward.