Charter Act of 1813

Enquiries into the Company's affairs were ordered before another renewal of the Charter due in 1813. In 1808, the House of Commons appointed a Committee of investigations. Its report on judicial and police arrangements was submitted in 1812. The government decided to allow British subjects access to lndia with their ships. 

The Home Government had specifically directed the Government of lndia not to follow the policy of conquests. But aggressive policies in lndia resulted in acquisition of territory. Lord Wellesley and Marquis of Hastings followed an imperialistic policy. The Company's power had spread to the whole of lndia except Punjab, Nepal and Sind. Company requested for financial help from the Parliament due to overspending in wars and setback in trade. There was also a lot of agitation against continuance of commercial monopoly by the East lndia Company. Independent merchants demanded ending of the same. They wanted a share in the trade with India. 

The teachings of Adam Smith and his school were by then dominating the politics of Britain. Benthamite Reformists, the Evangelicals and the Traditionalists tried to influence British politics and policies towards British India. Their foremost interest was to safeguard the stability of the Empire. 

The Act of 1813 renewed the Company's Charter for 20 years, but it asserted the sovereignty of the British Crown over the lndian territories held by the Company, Company was allowed to have territorial possessions for another 20 years. The Company was deprived of its monopoly of trade with India. It was allowed to continue with its monopoly of trade with China for 20 years. The lndian trade was thrown open to all British merchants.

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