Tension gripped the area and all shops downed their shutters soon after the incident which occured in the evening, a senior police official said.
The victim was identified as Sajjad Hussain Sheikh, a resident of Chandoosa in Baramulla district who died of bullet wounds on his forehead when the Border Security Force personnel opened fire on a group of people pelting stones on them at Reka chowk in the Batmaloo area.
A police spokesman said they were collecting further details on the incident and claimed there was no deployment of security forces in this area.
The Srinagar District Police administration has said that there was no deployment in the area, the spokesman said, adding that the matter was being investigated.