I would like to know if we can limit admin privileges to specific application. L

If I understand correctly, you want to control who is editing process models and rules and such, not just the application package?
You'll have to make those developers Basic Users (forum.appian.com/.../User_Management.html, and then you need to give them the Designer Role (forum.appian.com/.../User_Roles.html. This way they have access to the designer, but they do not have access to all applications like the System Administrators. Then you can set the security on your rules folders, process models, application packages, knowledge centers, etc. to only allow certain users to be editors or administrators.

Additionally, you can set permissions to Deny - which will override System Admin permissions. We found that out the hard way one time, do not add Deny permissions for All Users - even your system admins will be blocked at that point..

Thank you both of you, I will try out these options and see the results.

I tried but couldn't get much, scenario which I tested : Created Two Sys Admin accounts (TestSysAdm1 , TestSysAdm2) , after this created two folders (Test Folder A, test Folder B) in Process Model directory and added security on Test Folder A as TestSysAdm1 -> Administrator and TestSysAdm2 -> Deny. Vice versa for other folder but when I login by TestSysAdm2 then able to see the same "Test Folder A" which shouldn't be. Does this not work with SysAdmin User ?

I see in documentation and mentioned :If a user/group have been assigned the "Deny" role they cannot access the selected folder. Additionally, they cannot see the folder within the "Process Models" directory.