The "3 Idiots" star says the genre of horror films in India is still niche with not a very wide audience reach.
"The mainstream actors are staying away from it, may be because the genre is still niche. The audience's numbers may not be that large as compared to what a romantic or a comedy film will attract. So that might be a reason they stay away," Sharman told PTI.
The actor will be next seen in '1920 London', a horror film directed by Tinu Suresh Desai.
Sharman said when the film's producer, Vikram Bhatt, approached him for the role, he asked the actor if he would be willing to do a film like this.
"Vikram first asked me if I wanted to do this genre. But here I was getting a chance to be part of a successful franchise, so why wouldn't I do it. In a genre like this, there is very little as an actor that you can do," he said.
The 36-year-old actor, who had earlier acted in the horror comedy "Gang of Ghosts", feels the director plays a huge role when it comes to an out-and-out horror film as it can be often limiting for the actor.
"The presence of a director is extremely strong in horror genre. For an actor that leaves you with very limited reactions to the situations happening to your character. But here (in '1920 London'), the script was so strong that it goes beyond just standing there and getting scared," he said.
The "Golmaal" actor plays an exorcist in the film which also stars Meera Chopra. "This character has had an emotional journey of his own. Personally, I do believe in ghosts, in energies," he said.
"I think we humans create some energies which we cannot touch, but it happens because of some connections between our souls. To find that connect is very freaky. I think spirits and their unfulfilled wishes also exist," Sharman said. '1920 London' is scheduled to release on May 6.