Free Exit is the only option available in Round 1 and not in Round 2. In Round 2, if you want to resign from the allotted seat and opt for the seat secured in State Counselling, you have to forfeit the security deposit that you paid during the registration process for the Counselling. It is a conscious decision that you need to make between All India Counselling and State Counselling. You are eligible to participate in your State Counselling but when it comes to resigning from an allotted seat, you do not have the same options as you have in Round 1 of All India Counselling. So it is something that you need to think about. There is no option of transferring the security deposit from All India Counseling to State Counselling. You have to let the security deposit go. So based on your score, you need to consider whether you have chances of getting a better college in the State Counselling than the one you got in the 2nd round of All India Counselling. Check whether that college is worth losing the security deposit and then may be accordingly you can take a call.

Hey!

If you have not reported the college and has resigned the seat then you can partcipate in state quota counselling, but if you also want to participate in Mop up round/special roond caounselling of ALl India quota then you can also apply for upgradation rather than resigning the seat.

Hope I answered your query.
Thankyou