Malik, who was sentenced in a terror-financing case, hails from Maisuma which is in the vicinity of Lal Chowk.
Scores of youth shouting pro-Azadi slogans clashed with the armed forces who retorted to tear gas shelling.
Videos from the area showed women singing Azadi songs and reciting the Quran.
Parts of Srinagar observe shutdown, security beefed up ahead of Yasin Malik verdict
Parts of Srinagar observed a spontaneous shutdown on Wednesday ahead of a court’s verdict on the quantum of sentence for Yasin Malik.
Most of the shops and business establishments in Maisuma and adjoining areas, including some shops in Lal Chowk, were shut, locals said.
Shops in some areas of the old city were also shut down.
Armed forces have been deployed in strength in the city to avoid any law and order problems, officials said.
Malik, the chief of banned JKLF, was on May 19 convicted by a Delhi court under the stringent anti-militancy law in a case related to the funding of militant activities in Jammu and Kashmir, after he pleaded guilty to all charges framed against him.