New Delhi: SEBI, India’s stock market controller, has stated that Asian economic systems have to perk up regulatory actions and execute better risk management systems in order to foresee troubles and manage volatile capital flows.

At a meeting of securities analysts, Mr. Damodaran, SEBI’s Chairman said that the regulators wanted to recognize prospective dangers, and tackle them rather than simply react to events.

Mr. Damodaram said, “We need to put in place systems anticipating problems rather than respond to them inadequately and in delayed fashion after a problem has overtaken us.”

He also said that the foreign investors running after higher returns could speedily give up Asian markets, if income came down.

“That will impact on volatility in our markets. That will impact on our ability to cope with inflows that are large and sometimes outflows that are even larger,” he said.

The market controller, SEBI, during last month, has tightened up investment principles for outsiders those who were not registered.

Mr. Damodaran said then that SEBI required inflows to be transparent, whereas the finance minister said it was to moderate inflows.

“Regulators can no longer afford in our markets to play black pieces in the game of chess ... We need to occasionally make first moves as people with white pieces do,” he said.

Damodaran said regulators also required to defend capitalists by guaranteeing investment analysts disclosed commissions and additional payments plus promising conflicts of interests to investors.

“Today investors in many of our markets are blissfully unaware of what conflicts of interest can hurt them,” he said.

Last month, SEBI sought public comment on a draft proposal on regulating investment advisers that covered issues such as registration and disclosures of all commissions and rewards received for recommended investments.