SEBI Strengthens Advisory Ecosystem with Two Key Ease-of-Doing-Business Reforms
SDG 8: Decent Work & Economic Growth | SDG 16: Peace, Justice & Strong Institutions
Institutions: SEBI | Ministry of Finance
SEBI (Securities and Exchange Board of India) has announced two complementary Ease-of-Doing-Business measures for Investment Advisers (IAs) & Research Analysts (RAs). Together, they boost transparency, competition, and investor choice in India’s advisory market.
First, advisers and analysts are now permitted to share certified past-performance data with clients on a one-to-one basis until the upcoming Past Risk and Return Verification Agency (PaRRVA) becomes operational; the data must be certified by a chartered or cost accountant and cannot be publicly published.
Second, IAs may now provide a “second opinion” on assets held under pre-existing distribution arrangements, and may charge fees (capped at 2.5% of asset value per annum) for this service with annual client consent and disclosure of incumbent distributor costs.
Combined, these measures seek to enhance flexibility and transparency in the advisory process while aligning with investor-protection objectives.
These reforms advance India’s push under the “Investor Awareness & Protection” pillar and support the growth of professional fee-based advice models, complementing the broader Financial Sector Development Framework.
What is PaRRVA? → PaRRVA (Past Risk and Return Verification Agency) is a proposed independent agency under SEBI’s regulatory framework that will verify the risk–return metrics for investment advisers and analysts before these metrics can be publicly advertised or used in promotional material. It matters because it brings credibility, standardisation and investor trust into the advisory industry.
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