The Securities & Exchange Board of India (SEBI) has started taking action against the private-sector companies that have to meet the minimum public shareholding requirement within the fixed deadline of June 3.

All private-sector companies were asked to attain the minimum 25 per cent public shareholding requirement by June 3, but more than 105 companies failed to hit the mark, despite repeated reminders.

The capital market regulator on Tuesday, June 4, thus ordered the freezing of the voting rights as well as corporate benefits of those companies. Of the 105 companies, 33 companies have already been suspended by the stock exchanges, while the matter is sub judice in case of another three companies.

Speaking on the topic, SEBI member Prashant Saran, said, "Despite repeated cautionary advice. the said companies have failed to comply with the requirement of minimum public shareholding within the specified timeline."

SEBI has also issued a warning that it could take even stricter actions, such as levy of monetary penalties and initiation of criminal proceedings, against the faltering companies.

The deadline for public-sector companies to meet a similar criterion to bring the government's holding down to 90 per cent will expire in August.