Prasad (66-67-69) fired a third round of three-under-69 to take his total to 14-under-202 and be the highest-placed Indian in tied 13th place. He was six shots off the lead.
Sujjan Singh (68-66-70), who posted a 70 in round three, was the best placed among the Indian professionals at tied 23rd with a total of 12-under-204.
Arjun and Sujjan thus kept their Tour card hopes alive as the top-35 and ties are set to qualify for the 2017 season at the end of round four.
Among the other Indians in the field, Udayan Mane and Abhijit Singh Chadha occupied joint 50th place at nine-under-207.
Ashok Kumar was a further shot back in tied 58th, Aman Raj and Manu Gandas were both tied for 85th at six-under-210, Ajeetesh Sandhu was in tied 94th at five-under-211 and M Dharma was tied 106th at four-under-212.