The primary function of this CRA plus verification agency will be to verify the risk-return metrics for investment advisors, research analysts, algorithmic trading entities, and others authorised by SEBI to offer such services. However, it was clarified that the verification of risk-return metrics will only apply prospectively, beginning from the date of opting for the agency’s service.
Initially, the agency will operate on a pilot basis for a period of two months. During this period, the agency will gather feedback from stakeholders and refine its technological systems and processes to ensure a stable and efficient experience.
After this fine-tuning phase, the agency will become fully operational for the entities mentioned. Participation in the agency’s services will be voluntary, and it will not be required for those who do not wish to make claims about their past risk-return metrics.
