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.'
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.
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
Increased demand from oil importers for the American currency kept pressure on the rupee
Global investment firm Citigroup is bullish on Indian equity markets.
CLSA says government actions to facilitate investment more important for revival than a token monetary easing.
CLSA expects annual net inflows of $15 billion from domestic investors over the next few years in India.
Cleaning up India's grubby business climate is top of the agenda for both regulators and the government.
In New York market, the dollar continued to weaken against its rivals yesterday on a day devoid of major data releases out of Europe and the US.
In the long run, the decision could bring clearer rules to a sector that has failed to provide India with enough power because it has been so hamstrung by confusion and scandals over concessions allegedly handed to government cronies.
De-allocation could raise import bill by $3 billion, add to coal shortage.