Sebi's Performance Validation Agency coming soon to verify claims of higher returns

An agency to verify all claims of market outperformance is coming very soon for investors, Sebi Chairperson Madhabi Puri Buch said on August 2.

"You will soon see the Performance Validation Agency. NSE has done some brilliant work,” Puri said at a FICCI capital market conference in Mumbai, praising the National Stock Exchange (NSE) for its role in an innovative use of technology for affordability, which will enhance the credibility of investment intermediaries.

The PVA will allow anyone claiming higher returns and market outperformance - whether algorithm providers, research analysts, investment advisors, or portfolio managers - to validate using advanced technology at an affordable cost, Madhabi Puri added.

The initiative on PVA is part of market regulator Sebi's broader effort to facilitate and streamline registration and operational processes for intermediaries. "We are trying to speed up registration of intermediaries. We should ensure that people who want to come into this ecosystem are facilitated as soon as possible," Buch said. "We are very cognizant that their (intermediaries) lives should be made easier through the entire life cycle. Therefore, we set up working groups for ease of doing business."