Explain the working of green shoe options in the US capital market

Explain the working of green shoe options in the US capital market. 1. If a number of offshore GDR investors collectively wish to sell their holdings as shares in the domestic market, the option is:

(a) To seek the company making a reverse sponsored GDR issue

(b) To sell their GDRs to a FII which can exchange them for shares and sell in the domestic market

(c) Sell their GDRs to a resident domestic investor who can seek conversion into shares

(d) Seek the company to buyback the GDRs and pay for in shares

(e) Become portfolio investors on the domestic market.