Options auto Square Off - OTM, ITM Strikes

This query is regarding Options Square Off -

IF we don’t Square Off OTM strikes, on the expiry day, are they squared Off automatically, to Rs 0.05?

For ITM strikes, ONLY the last traded price will be taken into account, for my knowledge.

Please explain.

Hi @Ranganath.Bangalore , For all the index options

The entire amount paid as a premium will be lost. The options expire worthless.

ITM options are settled at intrinsic value (how much in-the-money the option is) - it will be based on the weighted average price of the last 30 minutes and not the last traded price.