Little Froth In The Market But It's Still Not A Bubble, Says Uday Kotak

While there is some froth in the market, it has not yet escalated into a full-fledged bubble, indicating the situation is not entirely beyond control, according to Uday Kotak, founder and director of Kotak Mahindra Bank Ltd.

"As long as we keep a watch and manage it well, we can make a sustained capital formation," Kotak said at a two-day research conference held by Securities and Exchange Board of India and National Institute of Securities Markets on Wednesday.

"We've witnessed the transformation of the Indian stock market. The average Indian saver has now become an investor. It's time for India to look ahead to the next 10-20 years for growth and development," Kotak said.

For sustained capital formation, while equity plays a significant role, it's not the only factor, according to him. "Just like a race needs two legs to run efficiently, we also need to focus on debt to support our economic progress."

"We need to thoroughly examine our financial system to ensure that both equity and debt markets work together effectively to sustain growth. There is undoubtedly some work to be done in this regard," he said.