The holders of Yes Bank AT1 bonds who saw their entire investment vanish a few months back were hoping for redress from the central bank, the regulator they thought should be looking after their interests. But they were bitterly disappointed when the Reserve Bank of India (RBI) said that the contract investors signed on clearly lays out the risks of investing in such products. RBI also said that investors should not reap higher returns when times are good and then complain about their losses when the risk comes home. Read about this here.
Some investors have gone to court saying that Yes Bank sold high-risk AT1 bonds to depositors without explicitly stating that the high interest came with the risk of wiping out the investment.