In light of SEBI Insider Trading Regulations, explain with reasons whether the following information is deemed as price sensitive : XY Ltd. is proposing for issue of bonus shares for its shareholders.

Information Status: Unpublished Price Sensitive Information (UPSI) Reason: A proposal for the issue of bonus shares to shareholders is considered UPSI. While bonus issues do not change the overall value of a shareholder's holding, they increase the number of shares, improve liquidity, and can be perceived positively by the market, potentially leading to a material effect on the share price. This information, before it is made public, is price sensitive.