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Hello Anu,
I have tried to reproduce the described behavior using Sitefinity 4.0 SP1 and it looks like the issue is not present in that build of Sitefinity, can you please let me know if you are using a different build version from the one I've tested with? I'm attaching a short video demonstrating the steps I've taken to test this behavior, please do not hesitate to let me know if I've missed something.
All the best,
Boyan Barnev
the Telerik team