So may be it has no idea of the container?

Can you pass to your support team for a quick answer?

@(Html.Kendo().Grid<PGE.MCRM.RDC.Web.ViewModel.TCA.CustomNotionalValueVM>()

    .Name("grid")       

    .Columns(columns =>

    {       

        columns.Bound(p => p.TRADE_KEY).Title("Trade Key").Width(80);

        columns.Bound(p => p.SYS_NAME).Title("PG&E System").Width(120);

        columns.Command(command => command.Destroy()).Width(110);

    })

    .ToolBar(toolbar =>

    {

        toolbar.Create();

        toolbar.Save();

    })   

    .Editable(editable => editable.Mode(GridEditMode.InCell))

    .Sortable()

    .Scrollable()

        .Filterable()

     .Events(e => e.Edit("gridEdit"))

    .DataSource(dataSource => dataSource

        .Ajax()       

        .Batch(true)

        .ServerOperation(false)

        .Events(events => events.Error("error_handler"))

        .Model(model => {

            model.Id(p => p.TRADE_KEY);

            model.Field(p => p.TRADE_KEY).Editable(false);        }

            )       

                .Create(update => update.Action("SaveNotionalValues", "TCA"))

            .Read(read => read.Action("GetNotionalValues", "TCA", new { sysID = "17", userID = "", tradeKey = "" }))

                .Update(update => update.Action("SaveNotionalValues", "TCA"))

            .Destroy(update => update.Action("DestroyNotionalValues", "TCA"))

    )   

//edit event and I check it is calling this function when I click on the new created row second column

function gridEdit() {

        //handle the grid edit event to get the dropdownlist show up

                $('<input  id="SYS_NAMEID" name="SYS_NAMEID" required />').appendTo(container).kendoDropDownList({

                autoBind: false,

                dataSource: pgeSystemsDataSource,

                dataTextField: "SYS_NAME",

                dataValueField: "SYS_NAME",

                });

                $('<span class="k-invalid-msg" data-for="SYS_NAME"></span>').appendTo(container); 

    }