

SEBI vide its notification dated 20th March, 2025 (Published on 21st March, 2025) has amended SEBI (Intermediaries) Regulations, 2008 by inserting a new Chapter after Chapter IIIB and before Chapter IV:
“CHAPTER IIIC – VERIFICATION OF PAST RISK AND RETURN METRICS
Applicability
16D. The provisions of this chapter shall be applicable only to Investment Advisers, Research Analysts, Algo Providers empaneled with a recognised stock exchange, and intermediaries permitted by the Board to provide the services of Investment Advisers, Research Analysts and Algorithmic Trading.
Explanation – For the purposes of this Chapter, an algo provider shall mean a person empaneled with a recognised stock exchange for providing the facility of algorithmic trading services, in the manner specified by the recognised stock exchange.
Verification of risk-return metrics
16E (1). The persons referred to in Regulation 16D shall be permitted to make claim of returns or performance in the form of risk and return metrics, which have been verified by a credit rating agency recognized by the Board to carry out the activity of a Past Risk and Return Verification Agency.
(2) Any claim in the form of verified risk or return metrics as referred to in sub-regulation (1) shall be made in the manner specified by the Board.
Action for Violation
16F. The Board may, in case of violation of sub-regulations (1) or (2) of Regulation 16E, take such action as it may deem fit including action under Chapter V of these regulations.”
Copy of the notification has been attached for reference.