From Jaypee to Monnet, IBC bound stocks have witnessed a steep fall in 2018

Jaypee Infratech's shares had rallied 68% between October and December 2017

Investors betting on insolvency-bound stocks have been caught on the wrong foot. Several investors had lapped up shares of companies that were headed for insolvency proceedings late last year, anticipating a business turnaround. This optimism led to a 30-40 per cent rally in these stocks. 

However, the stocks have been on a downward spiral for the past few months as the turnaround process has not panned out according to expectations. Uncertainty within the resolution process, consistent delays and the fear of trading curbs have prompted investors to book losses.

The Reserve Bank of India (RBI) issued its first list of companies to