New Delhi, Oct. 27 -- The International Financial Services Centres Authority (IFSCA) on Monday issued a consultation paper proposing a regulatory framework to mandate the dematerialization of securities by entities operating within Gujarat International Finance Tec-City (GIFT City).

The proposal aims to enhance regulatory coherence, streamline market operations and ensure that securities issued in the International Financial Services Centre are held with depositories registered under the IFSCA.

Dematerialization is the process of converting physical securities, like paper share certificates, into electronic form, which is then credited to an investor's demat account.

"It has been observed that certain entities continue to obtain Intern...