The system of the subsidiary alliance made Indian rulers let go of their armed forces and come under the protection of East India Company. The following changes occurred when this system came into being:
a. East India Company became the guardian of the territories that it took under the alliance
b. An English resident, who served as the EIC’s personnel, was appointed in the territory to keep a check on the ruler
c. The Indian rules were asked not to allow any other European companies to trade with them and enter their territory
d. Indian rulers were told to pay for the subsidiary armed forces of the EIC, disobeying which led to that part of the territory being forfeited by the company.