The Regulating Act was passed due to the mismanagement by the British East India government that brought a situation of insolvency. This act permitted the company to retain its territorial custody in India but looked up to regulate the activities and functioning of the company.
Answer: The Regulating Act was passed due to the mismanagement by the British East India government that brought a situation of insolvency. This act permitted the company to retain its territorial custody in India but looked up to regulate the activities and functioning of the company.
