There is currently no indication of a bubble in the market, according to Uday Kotak. The veteran banker believes there are enough checks and balances in place at this stage to prevent any major issues.

While he acknowledges the presence of some frothiness and bubbliness, Kotak emphasized that it is not yet out of control.

Kotak's statement comes days after the Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch raised concerns over frothiness in small- and mid-cap stocks.

The billionaire banker notes a significant growth in the futures and options category, indicating the dynamism of the market but stopping short of suggesting an impending bubble.

"The time has come for us to foresee over the next 10-20 years for India's growth and development is how can India look at improving its position on the currency side to get larger and larger positioning as a potential currency of trade on its capacity," said Kotak at the SEBI-NISM Research Conference.

@arbindtiwariT