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    Question

    ESOPs are now permitted for employees of CPSEs. What is

    a key eligibility criterion? 
    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. 

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