Explain the following: Fungibility.

Section 9 of the Depositories Act, 1996 states that securities in depositories shall be in fungible form. The act envisages that all securities held in depository shall be fungible i.e. all certificates of the same security shall become interchangeable in the sense that investor loses the right to obtain the exact certificate which is surrendered at the time of entry into depository. It is like withdrawing money from the bank without bothering about the distinctive numbers of the currencies.