A Depository can be compared with a bank, which holds the securities for depositors. An analogy between a bank and a depository may be drawn as follows:

Bank 

 Depository

 *Holds funds in an account.

 *Hold securities in an account.

 *Transfers funds between accounts on the instruction of the account holder.

 *Transfers securities between accounts on the instruction of the account holder. 

 *Facilitates transfer of money.

 *Facilitates transfer of ownership without handling of physical securities. 

 *Facilitate safekeeping of money.

 *Facilitates safekeeping of shares.