The operation of continental system had caused marked decline in the British Trade due to the long continuation of Napoleonic war. The British merchant’s persistently demanded that company trade should be opened to all private traders, so in order to meet their demand the charter act was passed. It is also known as the East India Company’s Act of 1813, was an Act that continued the British East India Company’s rule in India by the Parliament of Britain.
1. This asserted the Crown’s sovereignty over British India by defining the constitutional position of British in India.
2. This act also empowered the local governments to impose taxes on the persons subject to the jurisdiction of the Supreme Court.
3. The European British subjects was also strengthened in India over the power of the provincial governments and courts.
4. Financial provision was made to encourage a revival in Indian literature and for the promotion of science.
5. This act also envisages that missionaries can go and spread the Christianity in India.