The 10 students have been sent back after writing their exams, Prof Manzoor Ahmed, Vice-Chancellor of Swami Vivekanand Subharti University said.
67 Kashmiri students of the SVSU were suspended after they had allegedly distributed sweets at the University hostel and cheered for Pakistan cricket team's victory in a cricket match with India on March 2.
A disciplinary committee set up by the University had found ten students guilty of misconduct and damaging university property, while it had revoked the suspension of 57 other students.
The city police had even slapped sedition charges on students which were later withdrawn following widespread criticism, including from Jammu and Kashmir Chief Minister Omar Abdullah.
The local police is also probing the matter and they have recorded statements of the University administration and committee members.