The students belonging to All Nepal National Free Students Union gathered at the embassy gate at Lainchaur to oppose India's alleged interference in Nepal's political affairs.
The protest comes after the coalition government led by Prachanda registered a motion last week to amend the Constitution to accommodate some of the key demands of the Madhesi parties and other ethnic groups, including citizenship issue and delineation of provincial boundary.
Student leaders belonging to All Nepal National Free Students Union staged the protest and blamed India for "forcing" Nepal to amend the Constitution, according to Mahesh Bartaula, Vice-president of the organisation.
The protest was held in the morning when some key Madhesi leaders of Nepal were invited at the embassy by Indian ambassador to Nepal Ranjit Rae for a meeting to reportedly discuss the issue of Constitution amendment.