Yes, you will not be able to apply again until 10 months from your notice of rejection - I think this is in place to help the candidate to evaluate their circumstances and take steps towards submitting an improved application.
This is true for all stages except for flight grading - i.e. if you fail at management interviews, you WILL be eligible to reapply in 10 months and jump straight to the management interviews. However, if you fail after flight grading, you will not be able to apply for a longer period of time.