Indian companies have raised $1 billion so far this year - almost four times what they raised last year.
Investment bankers said retail investors were pulling back, while institutions were being pickier
India's biggest airline IndiGo is set to file the prospectus next week for a domestic stock market listing.
The introduction of GST would constitute India's biggest reform.
'Both IIP and CPI inflation numbers are showing a huge disconnect from the leading indicators.'
The Sensex closed the day at 27,490, higher by 479 points and the Nifty ended at 8331.95, up 150.45 points.
Sebi has long struggled with balancing the needs of small investors and those of the market.
The 30-share Sensex was up 191 points at 28,707.75 and the 50-share Nifty was up 54 points at 8,714.
So far this year, there have been 76 private equity investments in India
Market regulator Sebi to support stert-ups raise funds.
The benchmark BSE Sensex closed 0.53 per cent lower at 28,469.67 points.
The BSE index closed down 0.18 percent at 28,659.17, its lowest closing level since Feb. 11.
Sensex falls 117.03 pts to end at 28,883.11; Nifty closes 32.85 pts down at 8,723.70.
The BSE Sensex and Nifty fell more than 2 per cent on Tuesday, heading for their biggest daily loss since the midst of the rupee crisis in 2013
India only has 3.5 million workers undergoing skills courses a year, compared with 90 million in China
JP Morgan may buy stake in debt -laden SpiceJet
Increased demand from oil importers for the American currency kept pressure on the rupee
Investments are at risk if operators are unable to resolve concerns of authorities and customers after the rape accusation.
India's economy will see the fastest dollar nominal growth in the world in 2015, Credit Suisse says.
Global investment firm Citigroup is bullish on Indian equity markets.