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      Question

      ESOPs are now permitted for employees of CPSEs. What is

      a key eligibility criterion?ย 
      A Only contractors qualify Correct Answer Incorrect Answer
      B Employees need minimum 5 years of service Correct Answer Incorrect Answer
      C Only directors can receive ESOPs Correct Answer Incorrect Answer
      D All employees, including board level and non-board staff Correct Answer Incorrect Answer
      E ESOPs apply only during IPO process Correct Answer Incorrect Answer

      Solution

      CPSE ESOP rules allow all permanent employees, from senior directors to entry-level workers, to be granted ESOPs as part of their compensation packages, promoting ownership culture and retention.ย 

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