SECP promulgated the Companies (Asset Backed Securitization) Rules, 1999 (ABS Rules) on December 14, 1999. The purpose of ABS Rules is to regulate and facilitate the securitization transactions in the capital market. Special Purpose Vehicle (SPV) is an important segment of the securitization transaction. Special Purpose Vehicle raises funds by issue of Term Finance Certificates or any other instruments with the approval of the Commission, for such purpose and uses such funds by making payment to the Originator and through such process acquires the title, property or right in the receivables or other assets in the form of actionable claims.
Registration and Renewal of Special Purpose Vehicle (SPV)
A person eligible for registration as SPV may make an application to the Commission for registration under the ABS Rules. The detailed procedure for registration may be seen in the Companies (Asset-Backed Securitization) Rules, 1999