diff --git a/erpnext/schools/doctype/school_settings/school_settings.json b/erpnext/schools/doctype/school_settings/school_settings.json
index 8607a76..8d4d4f5 100644
--- a/erpnext/schools/doctype/school_settings/school_settings.json
+++ b/erpnext/schools/doctype/school_settings/school_settings.json
@@ -139,8 +139,8 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
-   "default": "1", 
-   "fieldname": "validation_from_pe", 
+   "description": "For Batch based Student Group, the Student Batch will be validated for every Student from the Program Enrollment.", 
+   "fieldname": "validate_batch", 
    "fieldtype": "Check", 
    "hidden": 0, 
    "ignore_user_permissions": 0, 
@@ -149,7 +149,38 @@
    "in_global_search": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
-   "label": "Validate the Student Group from Program Enrollment", 
+   "label": "Validate Batch for Students in Student Group", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_bulk_edit": 0, 
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "description": "For Course based Student Group, the Course will be validated for every Student from the enrolled Courses in Program Enrollment.", 
+   "fieldname": "validate_course", 
+   "fieldtype": "Check", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_global_search": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Validate Enrolled Course for Students in Student Group", 
    "length": 0, 
    "no_copy": 0, 
    "permlevel": 0, 
@@ -175,7 +206,7 @@
  "issingle": 1, 
  "istable": 0, 
  "max_attachments": 0, 
- "modified": "2017-04-27 15:37:00.159072", 
+ "modified": "2017-06-26 14:07:36.542314", 
  "modified_by": "Administrator", 
  "module": "Schools", 
  "name": "School Settings", 
diff --git a/erpnext/schools/doctype/school_settings/school_settings.py b/erpnext/schools/doctype/school_settings/school_settings.py
index 6d8efb4..999014a 100644
--- a/erpnext/schools/doctype/school_settings/school_settings.py
+++ b/erpnext/schools/doctype/school_settings/school_settings.py
@@ -11,7 +11,8 @@
 	# "key in defaults": "key in Global Defaults"
 	"academic_year": "current_academic_year",
 	"academic_term": "current_academic_term",
-	"student_validation_setting": "validation_from_pe",
+	"validate_batch": "validate_batch",
+	"validate_course": "validate_course"
 }
 
 class SchoolSettings(Document):
diff --git a/erpnext/schools/doctype/student_attendance/student_attendance.py b/erpnext/schools/doctype/student_attendance/student_attendance.py
index 2688123..6960296 100644
--- a/erpnext/schools/doctype/student_attendance/student_attendance.py
+++ b/erpnext/schools/doctype/student_attendance/student_attendance.py
@@ -35,9 +35,7 @@
 			student_group = frappe.db.get_value("Course Schedule", self.course_schedule, "student_group")
 		else:
 			student_group = self.student_group
-		student_group_students = []
-		for d in get_student_group_students(student_group):
-			student_group_students.append(d.student)
+		student_group_students = [d.student for d in get_student_group_students(student_group)]
 		if student_group and self.student not in student_group_students:
 			frappe.throw(_('''Student {0}: {1} does not belong to Student Group {2}'''.format(self.student, self.student_name, student_group)))
 
diff --git a/erpnext/schools/doctype/student_group/student_group.py b/erpnext/schools/doctype/student_group/student_group.py
index 26bd311..55f1b66 100644
--- a/erpnext/schools/doctype/student_group/student_group.py
+++ b/erpnext/schools/doctype/student_group/student_group.py
@@ -12,8 +12,7 @@
 	def validate(self):
 		self.validate_mandatory_fields()
 		self.validate_strength()
-		if frappe.defaults.get_defaults().student_validation_setting: 
-			self.validate_students()
+		self.validate_students()
 		self.validate_and_set_child_table_fields()
 		validate_duplicate_student(self.students)
 
@@ -31,12 +30,14 @@
 
 	def validate_students(self):
 		program_enrollment = get_program_enrollment(self.academic_year, self.academic_term, self.program, self.batch, self.course)
-		students = [d.student for d in program_enrollment] if program_enrollment else None
+		students = [d.student for d in program_enrollment] if program_enrollment else []
 		for d in self.students:
-			if self.group_based_on != "Activity" and students and d.student not in students and d.active == 1:
-				frappe.throw(_("{0} - {1} is not enrolled in the given {2}".format(d.group_roll_number, d.student_name, self.group_based_on)))
 			if not frappe.db.get_value("Student", d.student, "enabled") and d.active:
 				frappe.throw(_("{0} - {1} is inactive student".format(d.group_roll_number, d.student_name)))
+			if self.group_based_on == "Batch" and d.student not in students and frappe.defaults.get_defaults().validate_batch:
+				frappe.throw(_("{0} - {1} is not enrolled in the Batch {2}".format(d.group_roll_number, d.student_name, self.batch)))
+			if self.group_based_on == "Course" and d.student not in students and frappe.defaults.get_defaults().validate_course:
+				frappe.throw(_("{0} - {1} is not enrolled in the Course {2}".format(d.group_roll_number, d.student_name, self.course)))
 
 	def validate_and_set_child_table_fields(self):
 		roll_numbers = [d.group_roll_number for d in self.students if d.group_roll_number]