Protesters on Friday displayed flag of Islamic State in Iraq and Syria (ISIS) during a rally in old city after Friday prayers, official sources said.
They said some masked youth were seen carrying the flags of the international terror group during a protest after Friday prayers in Jamia Masjid area.
Police, however, said no such incident has been reported from anywhere in the valley on Friday.
Security officials have expressed concern over the displaying of ISIS flags during the protest rallies in Kashmir.
Today's was the fourth such incident in the last three months.