The students, who assembled at the Rehari Chowk, also clashed with police who used minor force to disperse them.
Authorities have constituted a committee to look into the allegation that an "out of syllabus" paper was prepared by the State Board of School Education (BOSE).
The students also demanded cancelation of the paper and a fresh examination. They also broke some window panes of police vans.
"The situation has been brought under control and students have dispersed," Deputy Commissioner Jammu Simrandeep Singh said.