Mahua Moitra Raises Insider Trading Allegation on Rekha Jhunjhunwala Over Nazara Exit Before Gaming Ban

In a critical development shaking investor sentiment, Trinamool Congress MP Mahua Moitra has accused Rekha Jhunjhunwala of insider trading, after she exited Nazara Technologies just before a government crackdown on real money gaming in India, as per news reports.

Rekha Jhunjhunwala's ₹334 Crore Stake Sale Raises Eyebrows

Rekha Jhunjhunwala offloaded her full 7.06% stake in Nazara Technologies on June 13, 2025, amounting to 61,80,000 shares. Sold at an average price of ₹1,225 per share, the transaction totalled approximately ₹334 crore. This close-to-perfectly timed exit occurred weeks before the Union Cabinet approved the Online Gaming Bill 2025 that bans real-money gaming across platforms.

Online Gaming Ban Triggers Market Selloff

Following the approval and introduction of the bill in Parliament, Nazara Technologies' share price witnessed a rapid decline. Within 4 trading sessions, the stock plunged 26.6%, dropping to ₹1,028 as of August 25, 2025. The legislation criminalises digital betting and prohibits monetary transactions, promotions, and advertisements related to real-money gaming. The Ministry of Electronics and Information Technology (MeitY) now holdsthe  authority to regulate and block such platforms.

Investor Losses and Market Reaction

While Rekha Jhunjhunwala’s timely divestment protected her from the subsequent wealth erosion, other major investors took a sharp hit. Investors such as Madhusudan Kela and Nikhil Kamath retained their shareholding positions and suffered mark-to-market losses totalling nearly ₹100 crore over just 4 sessions. Their combined stake, exceeding 25,00,000 shares, illustrates the broader investor exposure to the regulatory shift.

Read More: Rekha Jhunjhunwala Exits Nazara Before Gaming Bill, Avoids ₹334 Crore Loss!

Public Backlash and Political Spotlight

TMC MP Mahua Moitra publicly called out the exit strategy via her social media handle, alleging “pure and simple” insider trading. She criticised the market regulator SEBI for remaining inactive while investors faced substantial erosion in wealth. The coordinated exit has reignited calls for stricter corporate governance enforcement and transparency in market dealings.

Nazara Technologies Share Price Performance

On August 26, 2025, Nazara Technologies share price opened at ₹1,117.00 on NSE, above the previous close of ₹1,116.20. During the day, it surged to ₹1,152.90 and dipped to ₹1,106.00. The stock is trading at ₹1,138.50 as of 10:11 AM. The stock registered a moderate gain of 2.00%.

Over the past week, it has declined by 6.63%, over the past month, it has declined by 15.49%, and over the past 3 months, it has declined by 10.66%.

Conclusion

Rekha Jhunjhunwala’s complete exit from Nazara Technologies just before the announcement of a regulatory crackdown has triggered serious allegations of insider trading. As Nazara’s stock continues facing pressure post-bill, the episode puts a sharp spotlight on governance and regulatory accountability within India’s capital markets.

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