Trinamool Congress (TMC) MP Mahua Moitra, who was once under scrutiny over alleged cash-for-query scam case, has launched a sharp attack on investor and the co-founder of the asset management firm Rare Enterprises, Rekha Jhunjhunwala, alleging her of insider trading and market manipulation in connection with Nazara Technologies Ltd. Moitra’s comments came after it emerged that Jhunjhunwala had sold her entire stake in the gaming company weeks before the Central Government introduced the Online Gaming Bill 2025 in the Parliament, which bans real-money gaming.
“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. And no – I am not going to live in the US,” Moitra wrote on X, accusing regulators of inaction.
FinancialExpress.com could not verify the allegations against Rekha Jhunjhunwala independently.
This is insider trading. Pure & simple. In the US, SEC would do 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. pic.twitter.com/ml7uSVXaMe
— Mahua Moitra (@MahuaMoitra) August 24, 2025
What is insider trading?
Moitra’s allegation of insider trading refers to the buying or selling of a company’s shares by individuals with access to non-public, price-sensitive information. Such practices are illegal when used for personal gain, as they undermine market fairness and erode investor confidence.
Rekha Jhunjhunwala’s timely exit from Nazara
Rekha Jhunjhunwala had been a prominent shareholder in Nazara Technologies, inheriting her late husband Rakesh Jhunjhunwala’s stake. At the end of March 2025, she held 61.8 lakh shares, amounting to 7.06 per cent of the company. By June, however, she had completely exited her position through a family entity, selling her holding at an average price of around Rs 1,225 per share.
The exit, according to filings highlighted by Financial Express, netted her nearly Rs 334 crore and spared her from the steep decline in Nazara’s stock price that followed the introduction of the new legislation. Her move also marked the symbolic closure of Rakesh Jhunjhunwala’s legacy in Nazara, where he once owned over 10 per cent.
Shares tank post Gaming Bill
Nazara Technologies faced heavy selling pressure after the passage of the Promotion and Regulation of Online Gaming Bill, 2025. The legislation, now signed into law by President Droupadi Murmu on 22 August, bans real-money online games, a sector in which several gaming firms were significantly invested.
Shares of Nazara fell nearly 7 per cent intraday to Rs 1,302.45, before closing 4.13 per cent lower at Rs 1,155.75 last week, compared to Rs 1,205.60 at the previous close. The slide erased nearly Rs 916 crore in investor wealth.
ICICI Securities responded by slashing its target price for the stock by 27 per cent, from Rs 1,500 to Rs 1,100, downgrading its rating from ‘Buy’ to ‘Reduce’.
Big investors face losses
While Jhunjhunwala’s well-timed sale cushioned her portfolio, several marquee investors continue to reel under the impact of the market rout. Zerodha co-founder Nikhil Kamath, through Kamath Associates, holds 15.04 lakh shares (1.62 per cent), while veteran investor Madhusudan Kela owns 10.96 lakh shares (1.18 per cent). Plutus Wealth Management’s Arpit Khandelwal is also among those caught in the downturn.
As the stock continues to face volatility, questions are being raised over whether these investors will reduce exposure or wait out the regulatory uncertainty.
What do we know about Nazara Technologies?
Nazara Technologies, known for its gaming and eSports platforms, is not the only company under strain. The new law has had a seismic effect across India’s fast-growing gaming sector. Major real-money gaming firms such as Dream Sports (Dream11), Mobile Premier League (MPL), Zupee, Gameskraft, and Probo have already begun suspending operations.
Online Gaming Act, 2025
The Online Gaming Act, 2025, has changed the landscape for companies dependent on real-money formats. While the government argues that the law is necessary to regulate addiction, safeguard consumers, and prevent financial exploitation, industry experts warn it could stifle innovation and investment in India’s gaming ecosystem.
Moitra’s criticism has placed the spotlight on India’s market regulator, the Securities and Exchange Board of India (SEBI). She alleged that the regulator failed to act on what she described as a clear case of insider trading.