Hi @Mohit ,
Thanks for using Microsoft Q&A forum and posting your query.
As per my investigation it looks like Blob Storage Events are not supported for SFTP which is why you are experiencing this behavior. For more info please refer to this public doc: Blob Storage feature support in Azure Storage accounts
This looks like more of a limitation/unsupported functionality from Azure Blob side. Hence I would recommend you to please submit a feature request/ feedback in Azure feedback forum here: https://feedback.azure.com/d365community/forum/a8bb4a47-3525-ec11-b6e6-000d3a4f0f84
Also please do share the feedback link once it is posted so that others with similar idea can up-vote and/or comment on your suggestion.
Hope this info helps. Do let us know if you have further query.
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