The Securities & Exchange Board of India (SEBI) has declared that it would not relax the June 2013 deadline for promoters of as many as 40 companies to slash their holding to 75 per cent, a person with direct knowledge of the development.

Speaking on the condition of anonymity, the person said the market regulator reiterated and conveyed its intention of enforcing the 25 per cent norm to top officials of companies, in which public shareholding is below the obligatory 25 per cent.

Declaring his firm stance on the matter, SEBI Chairman Sinha reportedly said, "I see no movement towards it. The companies and their advisors are perhaps thinking that this time limit will be extended. But let me tell you that I am going to make it difficult.”

The regulator also warned that the companies which would fail to comply could face sanctions.

Information technology firm Wipro, private sector carrier Jet Airways, Anil Ambani Group's Reliance Power, Jaypee Infratech, L&T finance Holdings, two Essar Group co, and real estate giant DLF are among the companies, in which public shareholding is lower than the obligatory 25 per cent norm.

The market regulator has reiterated its intention to enforce the 25 per cent norm on several occasions, but a number of companies are yet to take even preliminary steps comply with the norm.