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Special Purpose Vehicle

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Special Purpose Vehicle
A subsidiary of a company that attempts to isolate risk from the parent company by maintaining its assets and liabilities on a completely separate balance sheet. It can be used as a counterparty in swap transactions, or the parent company can finance a project through an SPV that would put the parent company in danger of bankruptcy if the project does not perform well. During the Enron scandal, SPVs developed notoriety because Enron hid much of its debt in SPVs.


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Realty baron Hiranandani has an investment target of around Rs 1,000 crore every year till 2012 The special purpose vehicle run by the younger Hiranandani has a land bank of 500 acres A PHILANTHROPIST by nature, Surendra Hiranandani has been developing projects independently for the past few years through a special purpose vehicle ( SPV).
The project is to convert Daimler's commercial vehicles into special purpose vehicles.
For this purpose, Stressed Assets Stabilization Fund, set up for the purpose of acquiring the stressed assets of Industrial Development Bank of India, would function as a Special Purpose Vehicle (SPV).
 
 
 
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