Mahua Moitra raises insider trading charge as Rekha Jhunjhunwala sold entire Nazara stake ahead of online gaming ban

Trinamool Congress (TMC) MP Mahua Moitra has levelled serious allegations of insider trading against Rekha Jhunjhunwala, wife of the late Rakesh Jhunjhunwala, following her complete exit from Nazara Technologies ahead of a major regulatory development in the online gaming sector.

In a strongly worded post on X (formerly Twitter), Moitra wrote: “This is insider trading. Pure & simple. In the US, the SEC would do a full investigation, including subpoenas, phone & digital records. In India, Bhakts applaud while @SEBI_India sleeps. And no – I am not going to live in the US.”


The remarks came in reference to Rekha Jhunjhunwala’s sale of her entire 7.06% stake in Nazara Technologies, weeks before the Central Government introduced the Online Gaming Bill 2025 in Parliament, which effectively banned real-money gaming in India.

By March 2025, Rekha Jhunjhunwala held 61.8 lakh shares of Nazara, split between 13 lakh shares on the BSE and 14 lakh on the NSE. On June 13, 2025, she sold her entire holding at an average price of Rs 1,225 per share, valuing the deal at nearly Rs 334 crore.

The move, which now appears well-timed in hindsight, also marked the closure of the Jhunjhunwala family’s chapter in Nazara, as she had inherited the stake from Rakesh Jhunjhunwala, who earlier held 10.82% in the company.

In contrast, other prominent investors such as Madhusudan Kela and Nikhil Kamath continue to hold their stakes in Nazara.

As per June 2025 shareholding data, Kela holds 10.96 lakh shares (1.18%), while Kamath, through Kamath Associates, owns 15.04 lakh shares (1.62%).

he recent sharp selloff in Nazara shares has resulted in a combined mark-to-market loss of around Rs 100 crore for the two investors in just four trading sessions, with the stock plunging 26.6% to Rs 1,028 on the BSE as of Monday’s intraday trade.

The decline was triggered after the Union Cabinet approved the Online Gaming Bill 2025, which was later introduced in the Lok Sabha. The bill criminalises digital betting and bans monetary transactions related to real-money gaming (RMG). It also prohibits advertising and promotion of RMG across platforms and empowers MeitY (Ministry of Electronics and Information Technology) to regulate and block illegal gaming platforms.

Brokerages have also taken note of the regulatory overhang. ICICI Securities downgraded Nazara Technologies to ‘Reduce’ from ‘Add’ and slashed its target price to Rs 1,110 from Rs 1,500 earlier, stating: “In our view, the implementation of the bill would essentially make online Real Money Gaming infeasible in India. Given the ban on RMG, we now cut this to zero.”

While Rekha Jhunjhunwala’s timely exit saved her from the sharp wealth erosion that followed, other marquee investors and retail shareholders have borne the brunt of Nazara’s steep decline, as the gaming industry braces for a fundamental reshaping of its business landscape under the new law.

Also read: Nazara Tech shares plunge 28% in 4 days, breach brokerage target. What’s ahead?

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