Ex-Investment Banker and TMC MP Mahua Moitra has ignited a political and financial debate by accusing Rekha Jhunjhunwala—the widow of the late investor Rakesh Jhunjhunwala—of insider trading. Moitra pointed out that Rekha sold her entire stake in Nazara Technologies just weeks before the Online Gaming Bill was introduced. She called it “insider trading, pure and simple,” adding that in the U.S., the SEC would immediately investigate such a case using subpoenas and digital records. In contrast, Moitra alleged that “SEBI is sleeping” on what she believes is a clear case of market manipulation.
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
Strategic Exit: Timing and Tension
The numbers tell the story. By March 2025, Rekha Jhunjhunwala held a 7.06% stake in Nazara—about 61.8 lakh shares. On June 13, 2025, she sold all her shares—13 lakh on BSE and 14 lakh on NSE—at an average price of ₹1,225 per share, netting nearly ₹334 crore. Only a few weeks later, the government introduced the Online Gaming Bill, triggering a market meltdown. Nazara shares crashed 17–20% within days, wiping out hundreds of crores in investor wealth. Several brokerages, including ICICI Securities, downgraded the stock, cutting its target from ₹1,500 to ₹1,100 and assigning a zero value to its real-money gaming (RMG) business.
Ethical Questions: Market Fairness Under the Scanner
Rekha’s perfectly timed exit saved her from massive losses, but other major investors including Madhusudan Kela and Nikhil Kamath did not sell and now face mark-to-market losses exceeding ₹100 crore combined. This stark contrast raises the uncomfortable question: Is market success based on intelligence and foresight—or on privileged access to confidential information?
SEBI: Sleeping or Silent?
Moitra’s criticism highlights the perceived gulf between Indian regulatory action and global standards. She said, “In India, Bhakts applaud while @SEBI_India sleeps.” Despite the seriousness of the allegations, SEBI has not confirmed any investigation into this matter, causing worry among retail investors who rely on regulators for market fairness and protection against insider manipulation.
The Real-Money Gaming Ban
The controversy spills over beyond markets. The Online Gaming Bill 2025, passed on August 21, bans all real-money gaming activities—including rummy, poker, fantasy sports, and betting apps. While Nazara clarified that real-money gaming didn’t contribute to its Q1 FY26 revenues, investor sentiment has turned sharply negative. The ban is expected to disrupt India’s ₹23,000 crore digital gaming sector, affecting advertising, data usage, investments, and thousands of jobs. Startups are concerned the blanket ban could stifle innovation and push gaming companies offshore.
What Investors Should Learn
- Insider or Insight? Powerful investors timing exits before major policy changes naturally attract suspicion—even if legally valid.
- Retail Investors Left Behind: Ordinary investors often lack time to react, suffering the heaviest losses.
- Regulatory Responsibility: SEBI must step up with transparency to maintain faith in the market system.
- Smart vs. Suspicious Timing: The line between sharp foresight and unethical advantage remains blurred.
- Sector Shakeup: Gaming companies must swiftly adapt or risk extinction under the new rules.
Final Words
Rekha Jhunjhunwala’s perfectly timed exit from Nazara Technologies—just before the regulatory shock of the Online Gaming Bill—saved her hundreds of crores. But for many, the timing seems too perfect to be mere coincidence. As Nazara’s stock continues to tumble and SEBI remains silent, the larger issue comes into focus: India’s markets need stronger transparency, accountability, and better protection for retail investors. Without this, confidence in the system will remain fragile.
