Sir If we choose choice 2 and then if we are not alloted any seat in second round cant we participate in futher round
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You're allowed to participate in all the further rounds unless and until you get the College of choice 1 OR you lock the college that you have got in the first round (other than choice 1). Other than these cases, you're surely allowed to hold your seat and participate in further rounds.
Best wishes. Thank you.
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