The Settlement Price is the official price used by a stock exchange or clearing corporation at the end of a trading session to calculate the daily mark-to-market (MTM) gains and losses on open futures and options positions. In India, the NSE determines the settlement price for equity futures using the volume-weighted average price (VWAP) of the last 30 minutes of trading. For options, the final settlement price on expiry is based on the closing spot price of the underlying index or stock. Accurate settlement pricing is critical for the integrity of the derivatives clearing and margining process.