A special court has ordered an investigation into allegations of financial fraud against the Securities and Exchange Board of India’s former head, just days after her term ended.

The anti-corruption bureau was directed to begin a probe against former Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and five other officials "in connection with alleged stock market fraud and regulatory violations", Press Trust of India (PTI) news agency reported.

The Indian government on Thursday appointed Finance Secretary Tuhin Kanta Pandey as chief of the country's market regulator, replacing Madhabi Puri Buch, whose terms ends this month. Pandey has been appointed chairman of the Securities and Exchange Board of India (SEBI) for three years,

Reacting to the court’s order, SEBI, in a statement said it "would be initiating appropriate legal steps to challenge this order and remains committed to ensuring due regulatory compliance in all matters".