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SEC suspends stockbroking firm for issuing N1bn dud cheque

Friday Ekeoba, Lagos - 11.07.2008

For allegedly issuing a N1 billion dud cheque to a client, Transglobe Investment & Finance Company Limited, a member of the Nigerian Stock Exchange (NSE), has been suspended from operating in the stock market.

Specifically, Transglobe Investment and Finance Company Limited was suspended on Wednesday by the NSE for issuing a dud cheque of a new generation bank of over N1billion to a client, which was said to have bounced twice.

Nigerian Tribune gathered that Proshare NI, a Nigerian-based investment professionals, was given the news of the suspension by Professor Ndi Okereke-Onyiuke, Director General of the Nigerian Stock Exchange (NSE), in Abuja.

“Transglobe Investment has been suspended and remains so until otherwise,” she was quoted to have said. According to Proshare NI, at the time of filing in this report, it was still seeking for more details concerning Transglobe’s suspension and was yet to clarify the issue from officials of the company.

But the Nigerian Tribune could not confirm whether the suspension was over the unethical practice of issuing a dud cheque to its client or not making available statement of accounts to reflect transactions which, after enquiry, revealed that transactions had taken place in the account without the clients’ knowledge. Nigerian Tribune