So if Sensex weighted average close is 65397.62 on expiry day, 65400 CE should close at 0.05 and 65400 PE around 2.4 acc to my understanding.
But this weird behaviour where ce closed at 11. Will this be settled at intrinsic value by BSE?
This is not the price.
Settlement price would be around 65410.
Check in bhavcopy EOD
Does the bse follow a different system as compared to nse?
On NSE, when market closes, the last traded price is shown till 3:31. And then within 2 minutes, it updates and starts showing the weighted average closing. And that weighted average closing is how options are settled on NSE.
The same thing happened on sensex. Ltp was around 65392. Then it updated around 3:32 and started showing the weighted average closing.
Anyway, this mystery will be cleared when i get the contract note.
Sorry
The Underlying Asset Close Price was indeed 65397.62; just checked bhavcopy
Based on other strikes prices I told Settlement price would be around 65410.
This is correct then
Do tell me once you get your contract note
It was quite weird. All strikes were just jumping around. On NSE, I think we have algos that keep the option prices in line with weighted average in the last thirty minutes of expiry. But are they not working on BSE or what I don’t know. Becasue 65400 ce was at 10-11 for more than a minute with expected settlement of 0. Algos should have sold and hammered it to 0. It was literally free money at 3:29. 
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looks like algos have failed today. In past sensex expiries too, I have noticed that options pricing and adjusted closing price of Sensex have mismatched
Yes you were right .
65400 CE closed at 0 and 65400 PE at 2.38.
My position
Contract Note
Thought I was making some money but infact I was helping someone make money 
Thank you man @emrys11 .
If it weren’t for you I would not have probably checked my contract note.
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I track avg. weighted price by ITM strikes on expiry date but last BES EXPIRY SETTLEMENT WAS unfair. if somebody knew the closing price he could have bought 65400 PE at 0.6 and got 1.5+ points for free. LOL