A lot of replies. Great.
A big thanks to all of you who participated.
I agree to the solutions provided by ifx and Tyveleyn. stanislav.ondac, I agree that it might be the expected behaviour as per Informix but having such a field and getting high values for serial columns is just useless.
Changing the datatype is not viable at this point of time. For the sake of solution that I applied was that I was using a temporary table for storing some intermediate values. I added a serial column in that as well and when I used this TEMP table to copy stuff into the relevant table I inserted the column values as generated instead of 0. That solved it.
Needless to say, of course there are multiple solutions. And all that you folks suggested would work just fine.

Thanks everyone once again.
Glad to get help. I always get helped here.. its the greatest place for Informix

(considering the lack of proper documentation). But if the search on forums could be more efficient - that would simply be fantastic (right now it is so slow).