Victorian racing officials have banned flags from horse areas for the rest of the 2014 Melbourne Cup carnival in response to the incident that led to Araldo being euthanised on Tuesday.

Seventh-placed Araldo was leaving the track via the pathway to the mounting yard when it was spooked by a large flag in the crowd, causing it to veer and break a cannon bone in a fence.

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Scans on the leg revealed seven fractures, which were too severe to heal. Araldo was euthanised shortly after.

On Wednesday, Racing Victoria (RV) announced that horses competing in Group 1 races would be escorted directly to the mounting yard via the clocktower gate, bypassing the path and any crowd interaction.

“Racing Victoria, the Victoria Racing Club and Victorian Jockeys Association met today and determined that this will minimise congestion on the pathway behind the group one winner and avoid instances where the horses come to a standstill,” said RV chairman of stewards Terry Bailey in a statement.

“The incident involving Araldo was a freak accident and something that we have not seen previously.

“However, we have taken these interim measures for the remainder of the carnival and will discuss the long-term procedures with the VRC following its completion.”

NEWS: RV & @FlemingtonVRC have considered circumstances that led to tragic death of 2 horses following Melbourne Cup http://t.co/jC0Y2Mf0i2

— Racing Victoria (@RacingInsider) November 5, 2014

Araldo’s trainer Mike Moroney was still coming to terms with the death of the horse.

“The whole tragedy of the moment impacts on you when you arrive at work and all the staff are just in total disbelief. He was a popular horse and he had such a wonderful career ahead of him,” Moroney said.

RV also revealed it would not allow flags larger than one metre by one metre to enter the racecourse, with extra security to be employed in horse movement areas.

Additional veterinary resources will also be in place for the remainder of the carnival.

Araldo’s death followed that of Japanese stayer and Melbourne Cup favourite Admire Rakti, who died from acute heart failure following the race on Tuesday.

RV chief vet Dr Brian Stewart said he inspected Admire Rakti on the morning of the Melbourne Cup and found no issues with the horse.

“He was extremely well and fit,” Dr Stewart said.

He could recall only “half-a-dozen” instances where a horse had died from sudden heart failure, he added.

Dr Stewart said equine defibrillators would be considered in a review of the death.

“Whether it is practical, I don’t know; no [other racetrack] in the world has that arrangement,” he said.

Both horses will be cremated and their remains buried in the Memorial Garden at Living Legends in Greenvale, near Melbourne Airport.

NEWS: Fallen #MelbourneCup contenders Admire Rakti & Araldo will be honoured with memorial at @LivingLegendsAU http://t.co/CZ9JUBne3g

— Racing Victoria (@RacingInsider) November 5, 2014