This has been the norm for this university since it's inception, because it is a "Central" university and not a State university. There was never any restriction for admission to this university, and people from all over India were always allowed to apply.
For other state professional colleges, like Medical and Engineering, the state was allowed to restrict up to 85% of seats in professional colleges for locals. In J&K, that meant people holding a Permanent Resident Certificate. While the ratio of 85% for locals will remain, what will change is the definition of locals. It will now include those with a Permanent Resident Certificate and a Domicile Certificate.