Hi Ganesh,
By disabling the SQLSetStmtAttr for Cursor type, the ASE ODBC Driver defaults to FORWARD_ONLY cursor. I don't think this should impact things as it doesn't appear you are doing any sort of scrolling in the cursor. So by default the FORWARD_ONLY will retrieve the data and apparently handles the size correctly.
It looks like there is some sort of problem with the STATIC cursor. If you want to have this investigated you can open a Tech Support case and I can log this with Engineering to resolve in the future. If you're okay to use the FORWARD_ONLY cursor, go with that and I will log an internal CR for the STATIC cursor problem. I think that setting should work anyway but at this time I haven't figured out why it isn't working. More likely it is due to problem in the ASE ODBC Driver code.
Cheers,
-Paul