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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

CDSL- Reiteration of SEBI Circular regarding Recognition And Operationalization of Past Risk and Return Verification Agency

07-Apr-2025 | CDSL/OPS/DP/POLCY/2025/229

CDSL has reiterated the SEBI circular regarding Recognition And Operationalization of Past Risk and Return Verification Agency effective, 07th April, 2025.

Key Highlights are as follows:
1. Credit Rating Agencies(CRAs) are recognised as a PaRRVA in accordance with Regulation 12A of the SEBI (Credit Rating Agencies) Regulations, 1999 read with Regulation 16E of the Intermediaries Regulations and such CRA will engage with a recognized SE, which will serve as PaRRVA Data Centre (PDC).
2. The circular specifies the eligibility criteria for PaRRVA and PDC.
3. The recognised 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 and the same can be extended by SEBI subject to terms and conditions as may be specified.
4. A CRA shall develop the verification methodology and system in line with the recommendations of the technical group initially and by the Oversight Committee on an ongoing basis.
5. The PaRRVA has to keep and maintain the records for a minimum period of 5 years including all the verified outputs received from PDC and all the risk and return metrices.
6. The verified risk-return metrics are presented in the manner specified in Annexure-B.

Kindly refer to the attached document for more information.

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