Hello Sabitha,
This is because you haven't created the connectors in DEV. do you have that connectors in SM59?? I recoomend to create the connectors and associate the to the logical system just to keep all the systems with the same info. you can create the connectors but it's not neccesary to fill all the data in SM59. Just create the connector with the name would be fine.
If i modify the ruleset based on the connector group in development and transport the ruleset would all the physical systems still be listed in the drop down in Quality and Prod
Yes, this will be deleted only if you transport the logical system configuration from DEV and it's not related to SoD rules transport.
If we modify the ruleset based on connector group in development and transport , would it cause any inconsistency as it looks like the Quality and Prod the physical connectors are linked to the ruleset
No. if you are working with the logical system and you haven't uploaded rules to the physical ones it has no effect.
From your comment I understand that it does not matter about the physical systems as rule generation would take care of generating/linking the ruleset based on the systems assigned to the Connector Group/Logical Systems- If this is the case I am wondering why in development system even after the generation of rule-sets the physical systems are not available
This is because you haven't created the connector or you haven't linked the connectors to te connector groups or you haven't enabled the connectors for the auth scenario.
When generating rules the system generates the rules for the necessary logical systems. since you have none in DEV it wont generate rules for your scenario. So in the escenario you are describing in DEV with logical connectors but no physical ones you shouldn't be able to execute a risk analysis there.
Cheers,
Diego.