Mr Sheikh Abdul Aziz, a militant turned moderate political leader, was slain by Indian security personnel while marching on Monday in a protest near the Line of Control, which divides the Indian and Pakistani parts of the disputed region.

Four other protesters were killed in police firings on Monday, while more than 200 were injured in fierce clashes in the Muslim-majority Kashmir valley.

'We have imposed curfew to ensure the peaceful burial of Sheikh Aziz', the region's police chief, Mr Kuldeep Khuda, told reporters overnight.

Large numbers of police and federal paramilitary, carrying rifles and batons, patrolled the summer capital Srinagar and adjoining areas, including Mr Aziz's hometown of Pampore.

His body was kept in Srinagar's Mughal-built Jamia Masjid, the biggest mosque in the region. Hundreds of mourners stayed with the body overnight chanting, 'We want freedom' and 'Long live Sheikh Aziz'.

The latest tensions stem from an order by the Kashmir government in June to donate land to a Hindu pilgrimage trust in the valley. The decision sparked a series of protests that left six people dead.

The land transfer was then cancelled, leading to riots in Hindu-dominated Jammu, where Hindu hardliners began blocking the only road access to the valley - a move that has badly hit Muslim traders.

The blockade has led to shortages of essentials, such as medicines, and prompted Monday's protest march by about 100,000 Muslims to Pakistan so fruit growers and traders can sell their goods on the other side of the border.

Mr Khuda, the police chief, said his men were investigating why security personnel opened fire on protesters.

'We are trying to ascertain what forced security personnel to open fire', said Mr Khuda, as he appealed to people 'to help us in restoring peace'.

The mourners have said they will not bury Mr Aziz until two separatist leaders - Mr Mirwaiz Umar Farooq, a moderate, and Mr Syed Ali Geelani, a hardliner - were allowed to lead the funeral.

The two men are under house arrest.