<h1>Securities regulator warns mutual funds to curb fraud, strengthen governance, simplify rules and boost first-time investor incentives</h1> The securities regulator warned the mutual fund industry that operational risks - notably fraudulent redemptions by impersonators - threaten investor confidence and urged asset management companies to act promptly, monitor evolving fraud patterns and share modus operandi with peers and qualified registrars and transfer agents. The regulator signalled incentives for first-time women investors and distributor incentives targeting first-time investors in tier-2/3 cities to boost financial inclusion. It is reviewing scheme categorisation, discontinuing over 52 routine filings to ease compliance and pursuing broader mutual fund regulatory simplification, while urging responsible growth, stronger governance and ethical conduct amid competitive pressures.