Comment on Policy on settlement of compulsory delivery derivative contracts

Suppose I am:

Short 1000 PE 2 Lots (means 2 Lots Long)
and
Long 1100 PE 1 Lot (means 1 Lot Short)

How would it be settled on expiry day ? Gross Qty or Net Qty ?

Physical Delivery of no. of shares equal to 1 Lot (net) ?

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