'While retail investors lose...': Startup founder flags Rekha Jhunjhunwala's timely Nazara sell-off

Akshat Shrivastava, founder of Wisdom Hatch, on Sunday said retail investors continue to lose money to information asymmetry, citing ace investor Rekha Jhunjhunwala’s exit from Nazara Technologies weeks before the government banned online money gaming.  

"Rekha Jhunjhunwala saved 334Cr by selling her entire stake in Nazara Tech before online gaming bill was passed. This is not the first time (or the last time) that rich make money from information asymmetry. While, the retail people lose," Shrivastava wrote on X.  

He linked the episode to a broader history of insider advantages in Indian markets. "This used to be more deep rooted in the past. You would have watched the show Scam: 1992. It outlined how insiders made money exploiting information asymmetry (on the flip side: retail investors lost money — this part was not captured much on the show)," he added.  

Shrivastava alleged that such practices continue today. "Even today, Mutual Fund managers front-run stocks to make an alpha. Every time, someone front runs a stock the retail investors lose money," he said.  

Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, began selling her Nazara Technologies holding in early June 2025. The first tranche occurred between June 2–6, followed by another between June 9–10. By June 13, she had fully exited the company.

Weeks later, Parliament passed the Promotion and Regulation of Online Gaming Bill, 2025, banning real-money online games, prohibiting advertisements, and barring banks and financial institutions from facilitating payments. Following the legislation, Nazara Tech shares plunged 17.52% over three trading sessions, including a single-day fall of nearly 13%.  

Shrivastava advised retail investors to build investing skills rather than rely on fund managers. "So what's the solution to all this? Build investing skills, if you wish to invest in the stock markets. Learn things like valuation analysis, risk reward analysis, diversification principles etc. Your knowledge is your shield. If you can't do it, stick to land and gold," he said.  

Criticising investor dependence on intermediaries, he wrote: "It is funny: that you are convinced by the insiders that you are too dumb to manage your own money. And, you should simply go to office, work hard. And, at the end of the month: hand over your entire wealth to be managed by a 3rd party. You know who does that? fools."