Yes and no - it's complicated. The planet is a maximum security prison for the souls here, but for the most part it is a prison most people cannot sense with any of the 5 senses (usually simply because they are too busy to pay attention).

There is more than one way to lock down someone than just throwing them behind bars...how each person is subdued depends on what will affect them the most. For some of these people with special abilities (especially those awake enough to the true nature of their surroundings), being physically imprisoned would not do a single thing to them. So they are left physically alone - but are instead subdued psychically...sometimes to the point of driving them insane (after which point they will be sent to an institution for the rest of their current life - lock down successful) and sometimes to the point of nullifying their abilities and deadening their spirit (after which they will return to a "normal" life - lock down successful).

Those are just two examples of what actions could be taken to lock down a soul - there are hundreds of possible actions, each with the intended result of subduing souls that will not conform to the system.