Mahua Moitra accuses Rekha Jhunjhunwala of insider trading over Nazara share sale

Rekha Jhunjhunwala, widow of investor Rakesh Jhunjhunwala, sold 61.8 lakh Nazara Technologies shares—7.06 percent stake—via a family entity at ₹1,225 each, securing ₹334 crore just before the Online Gaming Bill received parliamentary and presidential approval

Trinamool Congress (TMC) MP Mahua Moitra has accused investor Rekha Jhunjhunwala of engaging in insider trading following her timely exit from Nazara Technologies ahead of the passage of the Online Gaming Bill, 2025. Moitra’s remarks, made on social media, have reignited debate on regulatory oversight in India’s financial markets.

Moitra claimed that Jhunjhunwala’s decision to sell her entire stake in Nazara weeks before Parliament tabled the Online Gaming Bill demonstrated use of price-sensitive information. “In the US, regulators like the SEC would investigate with subpoenas and digital records. In India, SEBI remains silent,” she wrote, suggesting a lack of accountability in the current system.

According to stock exchange filings, Jhunjhunwala, widow of veteran investor Rakesh Jhunjhunwala, sold 61.8 lakh shares—or 7.06 percent of Nazara—via a family entity at an average price of ₹1,225 per share. The transaction, completed before the bill’s approval in Parliament and subsequent presidential assent on August 22, fetched her around ₹334 crore.

Market fallout and investor losses

The law, which bans real-money online gaming formats, immediately impacted listed players. Nazara Technologies saw its stock plunge nearly 7 percent intraday to ₹1,302 before settling 4.13 percent lower at ₹1,155. The sharp fall wiped out an estimated ₹916 crore in shareholder wealth.

Brokerages reacted swiftly, with ICICI Securities slashing its price target for Nazara by 27 percent, from ₹1,500 to ₹1,100. While Jhunjhunwala’s timely exit helped her avoid the downturn, other high-profile investors were not as fortunate. Zerodha’s Nikhil Kamath, Madhusudan Kela, and Plutus Wealth’s Arpit Khandelwal are among those still holding significant stakes in the company.

Wider implications for the gaming sector

Industry watchers believe the Nazara episode reflects the broader uncertainty gripping India’s gaming ecosystem. With companies like Dream Sports, MPL, Zupee, and Gameskraft scaling back operations, analysts warn that the Online Gaming Act could stifle innovation and deter foreign investment in a once high-growth industry.

Moitra’s allegations have added fuel to the controversy, raising fresh questions about transparency, regulatory vigilance, and the future stability of India’s online gaming economy.