The new Treasury market structure has had notable episodes of market volatility and stress, but none to compare with the COVID event.2 Treasury market conditions deteriorated rapidly in the second week of March, when a wide range of investors sought to sell Treasuries to raise cash. Foreign official and private investors, certain hedge funds, and other levered investors were among the big sellers.
The dilemma, therefore, is in choosing the appropriate extreme scenario for Indian banks. V.  Migration to IFRS  The Indian banking system will need to address certain issues in implementing the convergence with the IFRS. First, the very crucial IFRS 9 relating to financial instruments, is still evolving and the final standard is unlikely to be available soon.