In a significant relief for Madhabi Puri Buch, the Bombay High Court on Tuesday put a hold on the order directing the registration of an FIR against the former Sebi chairperson. The court criticized the trial court’s decision, calling it “mechanical.”

On Saturday, a special court had instructed the Anti-Corruption Bureau (ACB) to file an FIR against Buch and five other officials over allegations of stock market fraud and regulatory violations.

“There is prima facie evidence suggesting regulatory lapses and possible collusion, necessitating a fair and impartial investigation,” stated Judge Shashikant Eknathrao Bangar of the special ACB court in his order.

Buch, who was India’s first woman to lead Sebi, completed her three-year tenure on Friday. Her tenure was marred by conflict of interest allegations from US-based short-seller Hindenburg, which also led to political scrutiny.