Based on albertodebortoli answer created the function with additional checks and substitution of punctuation marks.
# @fn def generate_table_of_contents markdown # {{{
# @brief Generates table of contents for given markdown text
#
# @param [String] markdown Markdown string e.g. File.read('README.md')
#
# @return [String] Table of content in markdown format.
#
def generate_table_of_contents markdown
table_of_contents = ""
i_section = 0
# to track markdown code sections, because e.g. ruby comments also start with #
inside_code_section = false
markdown.each_line do |line|
inside_code_section = !inside_code_section if line.start_with?('```')
forbidden_words = ['Table of contents', 'define', 'pragma']
next if !line.start_with?('#') || inside_code_section || forbidden_words.any? { |w| line =~ /#{w}/ }
title = line.gsub("#", "").strip
href = title.gsub(/(^[!.?:\(\)]+|[!.?:\(\)]+$)/, '').gsub(/[!.,?:; \(\)-]+/, "-").downcase
bullet = line.count("#") > 1 ? " *" : "#{i_section += 1}."
table_of_contents << " " * (line.count("#") - 1) + "#{bullet} [#{title}](\##{href})\n"
end
table_of_contents
end