Section 126(7) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(7)Duration of Commission. - The period of Short Service Commission shall be seven years commencing from the date of reporting for, or commencement of, training whichever is later. This maybe extended by a specified period at the discretion of the Chief of the Naval Staff, with the consent of the officer concerned, provided the period of extension does not exceed two years at a time and the total service of the officer does not exceed ten years. On expiry of their Short Service contract, including any period of extension thereof, officers shall be placed on the Emergency List for a period of 5 years.