In 2005, Indian companies were allowed to float SPVs in international capital markets to finance acquisitions abroad facilitating the use of leveraged buy-outs.
Since then, SPVs set up in off-shore financial centres, such as, Mauritius, Singapore and the Netherlands, have been mainly used as conduits to mobilise funds and invest in third countries mainly keeping in view the business and legal consideration, taxation advantages and easier access to financial resources in the countries.