Yes, KTU will regulate your internal marks after comparing the internal marks with the END Semester Marks. In the Handbook of KTU, it clearly states.
Internal marks given to the students who got 45% marks or more in the end semester
examination shall be regulated in line with the end semester examination performance.
For a Student to become eligible for writing exams, he has to get 45 % minimum as internal marks. This 45% or above mark is regulated or compared and reduced after comparing it with the students end semester examination marks.
Internal mark percentage shall not exceed 25% over the end semester mark %.
(For example, if the end semester mark % is 45, then the maximum internal mark % is to be 45+25 = 70 %.)
If a student gets this 70% or above, Then His/Her Marks will be reduced or regulated.
If the student gets the mark after writing a supplementary exam, then that marks will be taken for reduction or regulation.