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<h1>Regulation 16 mandates portfolio managers to adhere to client agreements, separate funds, and avoid speculative transactions.</h1> Regulation 16 of the Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993, outlines the obligations of portfolio managers regarding the investment and management of clients' funds. Portfolio managers must adhere to agreements with clients and can only invest in specified instruments. Clients can withdraw funds before maturity under certain conditions, such as termination of services or the manager's bankruptcy. Speculative transactions are prohibited, and managers must segregate client funds from their own. Securities cannot be held in the manager's name, and transactions must reflect market prices. Authorization is required for securities lending.