SEBI Launches New Risk & Return Verification Agency: A Major Step Toward Cleaner, Credible Market Advice | Code‑B Blog
India’s capital markets just took a significant leap toward transparency and investor protection.
On Monday, the Securities and Exchange Board of India (SEBI) rolled out a new Past Risk and Return Verification Agency — a technology-driven framework designed to curb misselling, standardize performance reporting, and establish digital audit trails across the industry.
This move comes at a crucial moment, as more retail investors enter the markets and misinformation across social platforms has become a growing threat. Why SEBI Introduced the Verification Agency
Earlier this year, Reuters revealed SEBI’s intent to seek wider powers to combat unauthorized investment advisory activity on platforms like:
WhatsApp
Telegram
YouTube
Social media channels
This included gaining access to certain communication records during investigations into market manipulation or unregistered advisory practices.
With the launch of the new agency, SEBI is strengthening its policy arsenal — pairing regulatory authority with technology enforcement.
What the New Verification Agency Does
According to SEBI Chairman Tuhin Kanta Pandey, the new system will:
Digitize and Standardize Performance Reporting
No more vague or inflated claims.
Funds, advisors, and intermediaries must report returns through verified, audit‑trailed digital systems, ensuring consistency and legitimacy.
Create a Digital Audit Trail
A complete trace of how risk and return data is generated, filed, verified, and published — making manipulation nearly impossible.
Reduce Misselling of Financial Products
A standardized and verified performance database will help investors see realistic expectations, not marketing exaggerations.
Promote Responsible Investing
By aligning expectations with verified historical performance, SEBI aims to reduce speculation and improve investor outcomes.
Pandey emphasized that credible performance data is foundational to building sustainable investor trust.
Why This Matters Now
India has seen:
Massive rise in retail participation
Surge in financial influencers
Growing misuse of social channels for unregulated stock tips
Increasing digital fraud cases
The new agency inserts a much‑needed trust layer between products and investors.
This is not just compliance reform — it is investor‑experience reform.
The Bigger Picture
SEBI’s move aligns with its broader strategy:
Stricter oversight on unregistered advisors
Tech-enabled market surveillance
Push for investor education & responsible behaviour
Deeper transparency across product categories
With digital investing becoming the norm, regulation too must evolve digitally — this announcement marks that evolution.
Bottom Line
The Past Risk & Return Verification Agency is poised to transform:
How products are sold
How performance is reported
How investors evaluate risk
How regulators trace wrongdoing
It strengthens the backbone of India’s rapidly expanding investment ecosystem.
This is SEBI sending a clear message:
Transparency is not optional. Responsible investing begins with responsible data.
Explore More Insights
For deeper understanding of how wealth management, advisory excellence, and capital‑market strategies shape India’s financial ecosystem, explore guidance from Ranjit Jha (CEO) — a pioneer in research‑driven wealth advisory.
To learn how Rurash Financials empowers investors through:
AIF access
Portfolio engineering
Unlisted equity opportunities
Personalised wealth strategies