How are Index Options like Nifty settled in India from sellers perspective?

[v90v]

If I sell a 17400 NIFTY PE at Rs.40 and collect 2000 premium and it expires at strike price of 17300 then as a seller, how much do I have pay as my option expired in the money?
And what if it expires out of the money? (In the above example instead of 17300 it expires at stirke price of 17500)

 

[optionwriter]

if nifty expires @ 17300 then you pay 5000-2000=3000
if nifty expires @ 17500 then you get 2000

Happy trading