Money managers in India have continued to sell Adani Group shares, indicating that worries over governance linger even if the worst of the collapse appears to have passed.

According to Bloomberg statistics, investments by local stock mutual funds in the group accounted for barely 0.9% of the industry’s $182 billion in assets at the end of March. This is down from about 2% on December 31.

The beleaguered conglomerate’s market value was reduced by $153 billion following the release of Hindenburg Research’s damning study on January 24. The company has strenuously refuted the short assertions, sellers, and it has since reduced capital spending for expansion and stated that its founders have paid back share-backed loans.

The ongoing caution of local management contrasts with the optimism displayed by GQG Partners’ star investor Rajiv Jain, who spent roughly $2 billion to acquire shares in four Adani firms in early March. The action triggered a more than $30 billion increase in the group’s market worth.

While the total exposure of Indian funds has decreased, some companies, such as Mirae Asset Investment Managers Ltd and HSBC Asset Management India Pvt, were purchased in March. According to Nuvama Wealth Management Ltd. statistics, they acquired less than 700,000 shares in two group firms.

Bloomberg Intelligence conducted a historical investigation in 2021 and discovered that local fund managers had lower stakes in businesses that disclosed governance difficulties than abroad and individual investors.