The charter Acts of the company was decided to renew by the year 1813. But it was still imminent dues to several socio-political problems. Thus there were several discussions about the justification of the commercial privileges enjoined with the company. The company`s commercial privileges were too much extended prior to the Charter Act of 1793. As a result the East India Company cease to functions properly as a dual body- commercial and political. Moreover with the introduction of the new concepts of laissez faire, Europeans demanded a share in the trades with India. The continental system introduced by Napoleon had closed the European ports to the British trade. Hence the English demanded to strengthen the trades in India. Dues to all these problems in the inland trades, the Englishmen demanded the s termination of the commercial monopoly of the East India Company in India. Hence the contemporary circumstances made it necessary for the renewals of the Charters Act of 1793.

The Charter Act of 1813 deprived the company of its monopoly of trade with India. Buts the company still enjoyed its monopoly of trades with China and the trades in tea. The s Indians trade being a subject to the Charter Acts of 1813, were made open to all the Englishmen. The shareholders of the Company due to these restrictions opposed against the regulations provided by the Charter Act of 1813.

Though the commercial jurisdiction of the Company was curtailed, yet they were granted a dividend of 10-½ % out of the total revenues of India. The Act continued to the company for a further period of twenty years. According to the recommendations of the charter Act of 1813, it was declared that the s constitutional positions of the British territories in India were explicitly defined for the first time. It had also been provided that the separate records were to be kept for the commercial transactions and the provincial revenues. The Charter Act of 1813 had defined in the clear terms, the power of superintendence and direction of the Board of Control. Moreover the power of the board of control was enlarged by this Act of 1813. But the significant part of the Charter Act of 1813 was the clause of providing for the sum of one lakh rupees annually for the s developments of literature and education in India. It had also been declared that the educated natives were to be encouraged for the introduction and promotion of the knowledge of sciences among the inhabitants of the British territories in India. This famous clause constituted the Charter Act of 1813 as the most important British pronouncement relating to India.