How can alter the select options provided by Simple hierarchical select?
Finally, I was able to resolve it by using the module handler "shs_term_data_response". Like below 

function YourModuleName_shs_term_data_response_alter(&amp;$content, $context) {
  $termList = json_decode($content);
  $filteredList = array();
  /..your logic to modify $termList and push it to new array.../
  $content = json_encode($filteredList);
}


Hope it may help someone :)