Query regarding Settlement of options on expiry day

F&O
1

If on expiry day, I purchase underlying stock as well as sell ITM Call, then will it count as set-off, or will my short itm call go into auction.

For example i purchased 400 reliance and sold 1 lot of 1210 ce on expiry day, then 400 shares will be adjusted against 500 shares of ITM Call sold?

2

It will be net off. There will be no physical settlement here.