User group folder Access Permissions

I have a folder with a document in it. Can I assign a user group to have read only permissions to that document.
But the same user group can edit the document if it is not present in that folder.

Is this possible? If so how can i implement this?

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The simple answer is that this isn’t possible.

The more complex answer is that it isn’t possible with JCR permissions. You may be able to achieve this through some customizations in workflows…but this will get complex and messy. It will add a burden to the maintenance of your project and the base product cannot guarantee to support your customizations if they happen outside of official extension points. I highly recommend against this.

Perhaps you can explain a bit more about the intent of your use case. There may or may not be another way to achieve what you want.