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SPECIAL PURPOSE VEHICLE
By
S.B.Neela vauhiny,
I M Com(2023-25)
DEPARTMENT OF COMMERCE
PRESENTATION TITLE 2
S. T. Hindu college, Nagercoil, Kanniyakumari District, Tamil Nadu, India.
contents
Special purpose vehicle
• Meaning
• Purpose of SPV
• Formation of SPV
3
Meaning
A special-purpose vehicle (SPV) is a legal entity that allows multiple
investors to pool their capital and make an investment in a single
company.
SPECIAL PURPOSE VEHICLE 4
Special Purpose Vehicle Examples
• An SPV can be used to securitize assets, such as mortgages
or auto loans.
• SPVs are also commonly used in joint ventures between two
or more companies.
• SPVs are also used in property deals, such as buying and
selling buildings or developing land.
• SPVs can also be used to isolate assets or risks from the
parent company. For example, a company may create an SPV
to hold all of its hazardous waste.
5
PURPOSE FOR CREATING SPV
SPECIAL PURPOSE VEHICLE 6
Purpose of creating SPV
Risk transferring and isolation are among the most
significant aims for creating SPVs. Being a separate
company makes it possible for the special purpose
vehicle to engage in risky ventures without putting the
parent company at risk.
7
FORMATION OF SPECIAL
PURPOSE VEHICLE
SPECIAL PURPOSE VEHICLE 8
Identify Purpose
9
Legal Structure Selection
10
Incorporation/Formation
11
Capitalization
12
Governance and Management
13
Regulatory Compliance
14
Operations and Administration
15
Risk Management and
Monitoring
16
Thank you

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Special Purpose Vehicle (Purpose, Formation & examples)