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.

India's market regulator and the Bombay Stock Exchange will take appropriate legal action to challenge a Mumbai court order against their officials in relation to an alleged stock market fraud and regulatory violations,

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".