Could someone guide to solve this?
It has been a few years since I worked with Jira Server (I'm on Cloud now). As I recall, it would only send the notification to users who had permission to browse the project, and it can't assess those permissions for a distribution list email. We had to create a "fake" user and give it the email address of the distribution list, then give that fake user Browse Project permission on the project in order for Jira to send the email to the DL.
That was on Jira 7.13. Things may have changed since then.
Also, make sure that your Email service managers set up the distribution list as External, not Internal.
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