Section 322(1) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(1)Subject to the provisions of Regulation 321 for the award of "VG." a higher character than "Good" shall not be given to any sailor if during the period for which his character is being assessed he has been awarded any of the following punishments, namely :(a)[Reduced in rank] [Substitued by S.R.O. 192, dated 10th September, 1973](b)Deprived of one or more Good Conduct Badges or of the Long Service and Good Conduct Medal.(c)Sentenced to cells, detention or imprisonment or any two or more of these punishments for less than 22 days in the aggregate.(d)Reduced to 2nd class for conduct, provided he is restored within the first or second months from the date of reduction See Regulation 319(5)].