Trinamool Congress MP Mahua Moitra has ignited a political and financial firestorm by accusing investor Rekha Jhunjhunwala of “insider trading, pure and simple” following her timely exit from Nazara Technologies just weeks before the passage of the Online Gaming Bill, 2025. The legislation, which bans real-money gaming across India, triggered a sharp decline in Nazara’s stock price, erasing nearly ₹916 crore in investor wealth.
Moitra’s allegations, made via a post on X (formerly Twitter), have sparked calls for regulatory scrutiny and raised questions about market fairness, transparency, and the role of institutional investors in India’s fast-growing gaming and tech sectors.
🧭 Timeline of Events Leading to the Controversy
| Date | Event Description | Market Impact |
|---|---|---|
| March 2025 | Rekha Jhunjhunwala holds 61.8 lakh shares in Nazara | 7.06% stake, valued at ₹755 crore |
| June 2025 | Jhunjhunwala exits Nazara via family entity | Sale nets ₹334 crore at ₹1,225/share |
| August 22, 2025 | Online Gaming Bill signed into law | Real-money gaming banned nationwide |
| August 23, 2025 | Nazara stock plunges 7% intraday | ₹916 crore investor wealth wiped out |
| August 24, 2025 | Mahua Moitra posts allegation on X | Accuses SEBI of inaction |
Moitra’s post read: “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.”
📊 Rekha Jhunjhunwala’s Nazara Exit: Timing and Financials
| Metric | Value/Details |
|---|---|
| Shares Held (March 2025) | 61.8 lakh |
| Stake Percentage | 7.06% |
| Sale Price (Average) | ₹1,225 per share |
| Total Sale Value | ₹334 crore |
| Exit Timing | Weeks before Gaming Bill tabling |
| Post-Bill Stock Price | ₹1,155.75 (down from ₹1,205.60) |
Jhunjhunwala’s exit spared her portfolio from the steep decline that followed the bill’s passage, which banned real-money online games—a segment where Nazara had significant exposure.
🔍 What Is Insider Trading and Why It Matters
Insider trading refers to the buying or selling of a company’s securities by individuals who have access to non-public, price-sensitive information. In India, it is governed by SEBI’s Prohibition of Insider Trading Regulations, 2015.
| Insider Trading Element | Definition |
|---|---|
| UPSI (Unpublished Price-Sensitive Info) | Information likely to affect stock price |
| Insider | Director, employee, or connected person |
| Trading on UPSI | Illegal under SEBI norms |
| Penalties | Fines, disgorgement, market ban |
Moitra’s allegation implies that Jhunjhunwala may have had prior knowledge of the bill’s impact on Nazara and exited accordingly, which—if proven—would constitute a serious breach of market ethics and law.
📉 Nazara Technologies Stock Performance Post-Bill
Nazara Technologies, a listed gaming and sports media company, faced immediate market backlash after the Online Gaming Bill was signed into law by President Droupadi Murmu on August 22.
| Date | Stock Price Movement | Market Reaction |
|---|---|---|
| August 22, 2025 | Intraday low: ₹1,302.45 | -7% decline |
| August 23, 2025 | Closing price: ₹1,155.75 | -4.13% from previous close |
| Target Price Cut | ICICI Securities: ₹1,500 → ₹1,100 | Downgraded from ‘Buy’ to ‘Reduce’ |
| Investor Wealth Loss | ₹916 crore | Panic selling across gaming stocks |
The bill’s impact extended beyond Nazara, triggering tremors across India’s gaming and eSports landscape.
🧠 Broader Investor Exposure and Fallout
While Jhunjhunwala’s timely exit cushioned her portfolio, other marquee investors absorbed the brunt of the market rout.
| Investor Name | Nazara Holdings (Approx.) | Exposure Risk Post-Bill |
|---|---|---|
| Nikhil Kamath (Zerodha) | 15.04 lakh shares | High exposure via Kamath Associates |
| Madhusudan Kela | 10.96 lakh shares | Significant stake |
| Arpit Khandelwal (Plutus Wealth) | Undisclosed | Among top institutional holders |
The slump has triggered debate over whether institutional investors will reduce exposure to gaming firms or hold steady despite regulatory uncertainty.
🔍 SEBI’s Role and Regulatory Response
SEBI has not yet issued a formal statement on Moitra’s allegations. However, the regulator has faced criticism in the past for delayed action in high-profile cases. Moitra’s post has reignited calls for proactive enforcement and transparency.
| SEBI Action Needed | Expected Outcome |
|---|---|
| Preliminary Inquiry | Review of trading patterns and disclosures |
| Digital Forensics | Phone, email, and trading terminal records |
| Stakeholder Interviews | Family office and Nazara insiders |
| Public Disclosure | Restore investor confidence |
Legal experts argue that SEBI must act swiftly to preserve market integrity and prevent erosion of trust.
🧠 Political and Public Reactions
Moitra’s post has drawn mixed reactions. While opposition leaders have echoed her demand for a probe, BJP supporters and market commentators have dismissed the allegations as speculative. The timing of the bill and the sale, however, continues to raise eyebrows.
| Stakeholder Group | Reaction to Allegation |
|---|---|
| Opposition MPs | Demand SEBI investigation |
| Market Analysts | Call for regulatory clarity |
| Investor Forums | Express concern over timing of sale |
| BJP Supporters | Dismiss as political posturing |
The controversy has also reignited discussions around the need for stricter insider trading enforcement and better pre-legislative transparency.
📌 Conclusion
Mahua Moitra’s explosive allegation against Rekha Jhunjhunwala has cast a spotlight on India’s regulatory framework and the ethical responsibilities of high-profile investors. As Nazara Technologies reels from the impact of the Online Gaming Bill, the timing of Jhunjhunwala’s exit raises serious questions about market fairness and insider access.
Whether SEBI launches a formal investigation or chooses to remain silent, the episode underscores the urgent need for robust enforcement, transparent disclosures, and investor protection in India’s rapidly evolving digital economy.
—
Disclaimer: This article is based on publicly available news reports and official statements as of August 25, 2025. It is intended for informational purposes only and does not constitute financial, legal, or investment advice.
