diff --git a/components/org.wso2.carbon.identity.organization.management.application/src/main/java/org/wso2/carbon/identity/organization/management/application/OrgApplicationManagerImpl.java b/components/org.wso2.carbon.identity.organization.management.application/src/main/java/org/wso2/carbon/identity/organization/management/application/OrgApplicationManagerImpl.java
index f65434de2..8383d1750 100644
--- a/components/org.wso2.carbon.identity.organization.management.application/src/main/java/org/wso2/carbon/identity/organization/management/application/OrgApplicationManagerImpl.java
+++ b/components/org.wso2.carbon.identity.organization.management.application/src/main/java/org/wso2/carbon/identity/organization/management/application/OrgApplicationManagerImpl.java
@@ -902,6 +902,8 @@ private ServiceProvider prepareSharedApplication(ServiceProvider mainApplication
         delegatedApplication.setApplicationName(oAuthConsumerApp.getApplicationName());
         delegatedApplication.setDescription(mainApplication.getDescription());
         delegatedApplication.setInboundAuthenticationConfig(inboundAuthConfig);
+        delegatedApplication.setAPIBasedAuthenticationEnabled(mainApplication.isAPIBasedAuthenticationEnabled());
+
         if (ApplicationMgtUtil.isConsole(mainApplication.getApplicationName())) {
             delegatedApplication.setAccessUrl(resolveAccessURL(mainApplication.getTenantDomain(), sharedOrgId,
                     FrameworkConstants.Application.CONSOLE_APP_PATH));
diff --git a/components/org.wso2.carbon.identity.organization.management.application/src/main/java/org/wso2/carbon/identity/organization/management/application/listener/FragmentApplicationMgtListener.java b/components/org.wso2.carbon.identity.organization.management.application/src/main/java/org/wso2/carbon/identity/organization/management/application/listener/FragmentApplicationMgtListener.java
index 23d081e3b..283b1294b 100644
--- a/components/org.wso2.carbon.identity.organization.management.application/src/main/java/org/wso2/carbon/identity/organization/management/application/listener/FragmentApplicationMgtListener.java
+++ b/components/org.wso2.carbon.identity.organization.management.application/src/main/java/org/wso2/carbon/identity/organization/management/application/listener/FragmentApplicationMgtListener.java
@@ -360,6 +360,7 @@ private void inheritAPIBasedAuthenticationEnabledProperty(ServiceProvider mainAp
                 }
             }
             sharedApplication.setSpProperties(properties);
+            sharedApplication.setAPIBasedAuthenticationEnabled(mainApplication.isAPIBasedAuthenticationEnabled());
         }
     }