Mahua Moitra, known for her sharp interventions in Parliament, took to social media to accuse Rekha Jhunjhunwala of engaging in insider trading. According to Moitra, Jhunjhunwala’s complete exit from Nazara Technologies weeks before the Online Gaming Bill, 2025, was tabled in Parliament shows clear use of price-sensitive information. “This is insider trading. Pure and simple. In the US, the SEC would do a full investigation, including subpoenas, phone and digital records. In India, Bhakts applaud while SEBI sleeps,” Moitra wrote.
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Her comments came after reports showed that Rekha Jhunjhunwala, widow of the late investor Rakesh Jhunjhunwala, offloaded her 61.8 lakh shares—7.06 percent of the company—through a family entity at an average price of ₹1,225 per share.
Timely Exit Nets ₹334 Crore
Financial filings highlighted that the sale netted Jhunjhunwala nearly ₹334 crore. Crucially, her move came before the Online Gaming Bill, 2025, was passed by Parliament and later signed into law by President Droupadi Murmu on August 22. The law bans real-money online gaming, dealing a blow to companies like Nazara that had significant exposure in the sector.
By exiting early, Jhunjhunwala avoided losses from a steep decline in share prices. After the bill’s passage, Nazara’s stock fell nearly 7 percent intraday to ₹1,302, before closing 4.13 percent lower at ₹1,155. The sharp slide erased an estimated ₹916 crore in investor wealth. Analysts like ICICI Securities responded by cutting Nazara’s target price by 27 percent, from ₹1,500 to ₹1,100.
Broader Impact on Investors
While Jhunjhunwala’s well-timed sale cushioned her portfolio, other prominent investors absorbed the brunt of the market rout. Zerodha co-founder Nikhil Kamath, through Kamath Associates, holds 15.04 lakh shares. Veteran investor Madhusudan Kela owns 10.96 lakh shares, while Plutus Wealth’s Arpit Khandelwal is also among those exposed.
The slump has triggered debate over whether marquee investors will reduce their exposure to gaming companies or hold steady despite the regulatory uncertainty. Industry observers warn that Nazara’s troubles reflect broader tremors across India’s gaming and eSports landscape.
The Online Gaming Act, 2025
The newly enacted Online Gaming Act, 2025, has redrawn the contours of India’s gaming industry. By banning real-money gaming formats, the government has sought to regulate addiction, safeguard consumers, and curb financial exploitation. But critics argue the law risks stifling innovation and discouraging foreign investment in a sector once touted as among India’s fastest growing.
Nazara Technologies, known for its gaming and eSports platforms, is now grappling with the fallout. Other major firms, including Dream Sports (Dream11), Mobile Premier League (MPL), Gameskraft, Zupee, and Probo, have already suspended or scaled down operations. Moitra’s accusation against Rekha Jhunjhunwala has added a fresh layer of controversy, spotlighting both regulatory lapses and the fragility of India’s gaming economy under the new regime.
