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Correct Option is 2 only

Regulating Act, (1773), legislation passed by the British Parliament for the regulation of the British East India
Company’s Indian territories, mainly in Bengal. It was the first intervention by the British government in the
company’s territorial affairs and marked the beginning of a takeover process that was completed in 1858.
The main provisions of the act were
• The appointment of a governor-general of Fort William in Bengal with supervisory powers over the
presidencies of Madras (now Chennai) and Bombay (now Mumbai). Hence statement 2 is correct.
• The governor-general had a council of four and was given a casting vote but no veto.
• A supreme court of four English judges was set up in Calcutta (now Kolkata). Hence statement 1 is
• In Great Britain annual elections of 24 directors were replaced by the election of six judges a year, each
for a four-year term, and the qualification for a vote was raised from £500 to £1,000.  

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