"We must look for solutions to technology to prevent excess of telephone conversations outside the institutional framework of government... I am asking the cabinet secretary to look into these issues and report back to the cabinet within the next month," he said while inaugurating the India Corporate Week 2010 in New Delhi.
Chandrasekhar has been asked to submit the report in this regard within a month.
Singh said he was aware of the "nervousness" in the corporate sector over the powers to tap telephone for protecting national security, prevent tax evasion and money laundering.
"While these powers are needed, they have to be exercised with utmost care and under very defined rules, procedures and mechanisms so that they are not misused," he said.
"Legal mechanisms in place should be strengthened for more effective enforcement," Singh further added.
The prime minister's remarks come in the backdrop of Tata Group Chairman Ratan Tata approaching the Supreme Court against the leakage of tapes involving him and corporate lobbyist Niira Radia.
HDFC Chairman Deepak Parikh had also commented earlier this week on telephone tapping and leakage of "private conversations". He said the morale of the industry has been hurt by such incidents.
