7) RBI has indicated that the capital requirement under IMA would be a function of three components: (i) Normal VaR Measure (for general market risk and specific risk) (ii) Stressed VaR Measure (for general market risk and specific risk) (iii) Incremental Risk Charge (IRC) (for positions subject to interest rate specific-risk capital charge).
General market risk and specific risk can be modelled together or separately for normal VaR measure and stressed VaR measure. In other words, a bank could calculate either a combined VaR measure for the  2  BIS central bankers’ speeches  two risk categories (general market risk and specific risk) or separate VaR measures for each of them.