1. These four appeals are directed against the Respondent’s composite order pertaining to the appellants passed on 30-7-2002. The order is under regulation 29(3) of the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992 (the Stock Broker Regulations) read with regulation 13 of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995 (the FUTP Regulations). According to the Respondent (SEBI) "the index movements of stock exchanges showed excessive volatility especially during mid February to mid March, 2001". In the context of "apprehensions of possible attempts by certain entities to distort the true market discovery and manipulate the securities market" SEBI carried out a preliminary investigation to find out the role of various entities including the Appellants. According to SEBI these preliminary investigations revealed that the Appellants had indulged in large trading transactions in the scrips of some companies (stated in the impugned order) and "these transactions prima facie appeared, inter alia, to have been carried out to artificially depress the prices" of the scrips of the said companies. In that context on 18-4-2001 SEBI passed an ex parte order debarring the Appellants from undertaking any fresh business as stock brokers and sub-brokers till further order. A post decisional hearing was given to the Appellants on 30-4-2001 and thereafter an interim order confirming the ex parte order was passed on 4-6-2001. On the same day an Enquiry Officer was appointed. The Enquiry Officer issued a show-cause notice to the Appellants on 10-9-2001. He also issued a second show-cause notice to them on 25-1-2002. The Enquiry Officer submitted his report on 22-5-2002. The Enquiry Officer in his report observed inter alia that :

(A) Nirmal Bang Securities Pvt. Ltd. (NBS) :

(1)Indulging in large trading transactions in the selective scrips with a view to depress artificially the prices of these securities between mid February and mid March 2001 in a concerted manner with BEB. These scrips are of Global Tele, HFCL, Infosys, Satyam, DSQ Software, Zee Telefilms and Reliance Industries.

(2)Dealing with unregistered sub-brokers, Money Growth Investments and Arihant Investments.

(3)Indulging in short sales after 8-3-2001 in violation of SEBI Circular dated 7-3-2001.

(B) Bang Equity Broking Pvt. Ltd. (BEB) :

(1)Indulging in large trading transactions in the selective scrips with a view to depress artificially the prices of these securities between mid February and mid March in a concerted manner. NBS was acting in concert with BEB in effecting large scale transactions in the scrips of Global Tele, HFCL, Infosys, Satyam, DSQ, Zee Telefilms. The trading by BEB in Global Tele, HFCL, Infosys, Satyam, DSQ Software and Zee Telefilms in which BEB had significant sales between mid February & mid March were found manipulative.

(2)Two lakh shares of Global Tele were sold when share prices registered substantial fall.

(3)Indulging in synchronised trades with First Global Stock Brokers (FGSB) in which the price, quantity etc. were matched and which in turn is a manipulative practice.

(4)Dealing with Palombe, an unregistered sub-broker.

(5)Indulging in short sales after 8-3-2001 in violation of SEBI Circular dated 7-3-2001.

(C) Bama Securities Ltd. (Bama) :

(1)Indulging in large trading transactions in the selective scrips with a view to depress artificially the prices of these securities between mid February and mid March in a concerted manner. The trading by Bama in Global Tele in Settlement No. 8, HFCL in Settlement No. 11, Satyam in Settlement No. 11, are considered significant sales. The trading by Bama on 23rd February, 1st March, 2nd March 2001 are very high and manipulative.

(2)When share prices registered substantial fall—there were 11 sales in time slots which were considered significant.

(3)Bama was acting in concert with Bang