In June 2025, Rekha Jhunjhunwala, executor of the estate of the late Rakesh Jhunjhunwala, sold her entire 7.06% stake in Nazara Technologies, a leading Indian gaming and esports company, for approximately ₹334 crore. 

The timing of this sale, just months before the Indian Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, which imposed restrictions on real-money gaming (RMG), has sparked speculation and allegations of insider trading on social media and in some media reports. 

Below, we break down the facts, the allegations, and the current status to help you craft an informed news blog.

Key Facts About the Stake Sales take Details and Transaction:As of March 2025, Rekha Jhunjhunwala held a 7.06% stake in Nazara Technologies, equivalent to 61.8 lakh shares.

Between June 2 and June 10, 2025, she sold 29.75 lakh shares in multiple tranches, reducing her stake to 3.66% (32.08 lakh shares). The sales were executed via open market transactions at an average price of around ₹1,256 per share, totaling approximately ₹374–₹380 crore.

On June 13, 2025, she sold the remaining stake, including 13 lakh shares on the BSE and 14.23 lakh shares on the NSE, at an average price of ₹1,225 per share, totaling ₹334 crore. This brought her holding in Nazara Technologies to zero.

The total value of the stake sale is consistently reported as approximately ₹334 crore across sources, though some earlier sales (June 2–10) were valued at up to ₹380 crore due to higher share prices at the time.

Timing and Market Impact:Nazara Technologies’ share price was near a four-year high in June 2025, peaking at ₹1,340 on June 13.

The stock surged 31% in 2025 up to that point, outperforming the BSE Sensex, which gained only 4%.

After the passage of the Online Gaming Bill in August 2025, Nazara’s stock plummeted, dropping 17.58% over five trading sessions and closing at ₹1,193.90 on August 21, 2025, with a market cap of ₹11,153 crore.

The bill, passed by both houses of Parliament, banned real-money gaming, impacting companies like Nazara with perceived exposure to RMG through subsidiaries like Moonshine Technology (operator of PokerBaazi).

Unlike Rekha Jhunjhunwala, other prominent investors, such as Madhusudan Kela (1.18% stake, 10.96 lakh shares) and Nikhil Kamath (1.62% stake via Kamath Associates, 15.04 lakh shares), retained their holdings in Nazara despite the regulatory changes.

SBI Mutual Fund holds an 8.37% stake, and Plutus Wealth Management owns 11.54%, indicating continued institutional interest.

The allegations primarily stem from social media discussions on platforms like X, where users speculated that Rekha Jhunjhunwala’s sale was suspiciously timed, occurring just before the Online Gaming Bill was passed, which led to a significant drop in Nazara’s stock price.

A post by the X account @Stock_marketIND

on August 23, 2025, highlighted the dates and quantities of shares sold, sparking debate. Comments from users like Praveen Kumar (“Absolutely rich have access n find a way early n it’s the harsh reality”) and Vishan Khadke (“Not everyone has access to same information”) suggested that wealthy investors like Jhunjhunwala may have had prior knowledge of regulatory changes.

However, the same post clarified that there is no evidence to confirm insider trading, suggesting the sale could be attributed to “portfolio rebalancing or caution about gaming regulations

But Rekha Jhunjhunwala and her late husband, Rakesh Jhunjhunwala, were involved in a settled insider trading case with SEBI in 2021 related to Aptech Computers. The case involved trading in Aptech shares in 2016 while allegedly in possession of UPSI about the company’s entry into the preschool segment. The couple, along with eight others, paid ₹37 crore to settle the case without admitting or denying guilt, a common practice to avoid litigation.

This prior settlement has fueled speculation about the Nazara sale, but it does not constitute evidence of wrongdoing in the current case.

Several sources suggest that Rekha Jhunjhunwala’s sale could be part of a strategic portfolio adjustment, possibly driven by Nazara’s stock reaching a near four-year high in June 2025 (₹1,340). Selling at a peak is a common investment strategy to lock in profits.

Nazara’s strong performance in 2025 (31% stock gain year-to-date) and its high price-to-earnings ratio (P/E of 152.7, considered expensive) may have prompted the sale.

Some X users argued that exiting Nazara was “common sense” given the stock’s high valuation and potential regulatory risks in the gaming sector, even without specific knowledge of the bill.

Disclaimer:This article is for informational and educational purposes only. It does not constitute investment advice or a recommendation to buy or sell any security. All information is based on publicly available sources, and there is no allegation or confirmation of wrongdoing by any individual or company. Investors should conduct their own research or consult a qualified financial advisor before making investment decisions.