Diginex Faces Nasdaq Ultimatum Amid Shifting Short Interest

A significant reduction in short selling activity for Diginex shares was recorded in March, yet the company’s fundamental challenges remain acute. Short interest declined by 21.3% last month, a notable pullback by bearish investors. However, this retreat coincides with a critical struggle by the fintech firm to maintain its listing on the Nasdaq exchange.

Shareholder Vote Called to Address Listing Breach

The primary catalyst for the current situation is a formal notification from Nasdaq received on March 23, 2026. The exchange alerted Diginex that it was no longer in compliance with Listing Rule 5550(a)(2), which mandates a minimum bid price of $1.00. The company’s stock had closed below that threshold for more than 30 consecutive trading sessions.

In response, Diginex has scheduled an Extraordinary General Meeting (EGM) for April 13, 2026. Shareholders will be asked to approve two key measures. The first is an 8-for-1 reverse stock split, a move that would effectively undo the bonus share split implemented in September 2025. The second proposal is an increase to the company’s authorized share capital, which management states would provide flexibility for potential future acquisitions.

Should investors sell immediately? Or is it worth buying Diginex?

Trading Near Lows Despite Institutional Moves

Recent trading paints a sobering picture of investor sentiment. The stock recently opened at $0.46 before declining a further 5.6%, hovering close to its 12-month low of $0.44. Despite the monthly drop, the overall short interest position remains modest, with approximately 1.93 million shares sold short. This figure represents about 1.1% of the float, equating to a short ratio of one day.

Activity among institutional investors presents a mixed signal. Recent filings show that firms including Geode Capital Management, UBS, and Bank of America have either established or increased their positions in Diginex. Conversely, analyst sentiment continues to lean toward sell-side recommendations, indicating lingering skepticism.

The upcoming EGM represents the next decisive milestone. Should shareholders approve the reverse split, the stock’s nominal price would be lifted above the critical $1.00 mark—at least on paper. Whether this technical compliance can translate into restored investor confidence will ultimately depend on Diginex’s ability to deliver operational results.