Retail investors, institutions stare at huge capital losses in 'Big 12'

Close to a million retail shareholders and some top institutions are staring at hundreds of crores in capital losses in large companies marked by the Reserve Bank of India (RBI) for insolvency process.

“Companies going into insolvency means they do not have enough assets to pay even the secured creditors. Equity investors will get nothing,” said a senior financial services executive. 

In a corporate structure, the owners or equity shareholders come last in the pecking order of payments at the time of liquidation. But, this will be a new experience for public shareholders in India as the corporate insolvency framework