What may be observed in spiritual settings? (7)

I believe the answer is:

rituals

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'what may' is the definition.
I can't judge whether this definition defines the answer.

'observed in spiritual settings?' is the wordplay.
'observed in' says the answer is hidden in the clue.
'RITUALS' can be found hidden inside 'spiritual settings'.

'be' acts as a link.

Can you help me to learn more?

(Other definitions for rituals that I've seen before include "They're 16 [REGULARLY] observed" , "Ceremonies" .)

I've seen this clue in The Times.

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