This writ petition is filed for a writ of mandamus questioning/challenging the proceedings in MRD/DSN1 01507/2007, dated 16.8.2007 issued by the Securities and Exchange Board of India (SEBI) i.e., the 2nd and 3rd respondents, as arbitrary, illegal and violative of Articles 14,19(1)(g) and 21 of the Constitution of India, apart from contrary to the provisions of the Securities Contracts (Regulation) Act 1956 and the Hyderabad Stock Exchange Limited (Corporatisation and Demutualisation) Scheme, 2005 and Securities and Contracts (Regulation) (Manner of increasing and maintaining public share holding in recognized stock exchange).

2. 4th respondent-Hyderabad Stock Exchange Limited was impleaded as per order dated 7.9.2007 made in W.P.M.P.No.23994 of 2007.

3. Counter-affidavit had been filed by respondents 2 and 3 and reply affidavh also had been filed by the writ petitioners. This Court issued notice before admission on 29.8.2007 and further issued Rule nisi on 11.10.2007. '

4. Contentions of Sri P. Kesava Rao:

Sri Kesava Rao, learned Counsel representing the writ petitioners had taken this Court through the affidavit filed in support of the writ petition and the counter-affidavit and