The separatist leaders were told that "restrictions have been imposed on their movement in the national capital" ahead a possible talks between NSA Sartaj Aziz and his Indian counterpart Ajit Doval.
During the searches, a few thousand Pakistani rupees and currencies belonging to the UAE and Saudi Arabia as well as incriminating documents were found
The NIA is also probing all angles of the funding of separatist leaders.
For the first time in 25 years since the start of militancy in Kashmir, the separatists have not called for a general strike on Martyrs' Day on Monday in view of the fasting month of Ramzan.
Mystery still surrounded the claim by Kashmiri separatist leader Syed Ali Shah Geelani that Narendra Modi had sent two emissaries to him carrying a message with a Lok Janshakti Party leader whose named surfaced maintaining today he met him but not as an emissary.
'It will be a long time before we will see the likes of Vajpayee again.'
Curfew remained in force in the five districts of Anantnag, Kulgam, Pulwama, Shopian and Baramulla.
As many as 20 more youths have joined the terrorist groups in the month of May which included Rouf from Ganderbal, a fourth-semester student pursuing a diploma course in government polytechnic, the officials said.
The sudden arrest and immediate release of Kashmiri separatist leaders who are to meet Pakistan National Security Advisor Sartaj Aziz introduced an intriguing element into the scheduled talks he will have with his Indian counterpart Ajit Doval on terror on next week.
Probe agencies have found a common link between money received by Firdous Ahmad Shah, a member of Syed Ali Shah Geelani's hardline Hurriyat Conference, and financiers of 26/11.
Curfew was imposed in the Srinagar and other parts of the Kashmir Valley a day after four people were killed and 40 others wounded in security force firing at Gool in Ramban district of Jammu region.
Days after rebuffing outreach attempt by a group of MPs, hardline Hurriyat Conference Chairman Syed Ali Shah Geelani has said that talks with New Delhi are bound to fail till the "gravity and intensity" of the Kashmir issue is agreed upon.
The 45-year-old separatist leader has been booked under the harsh law for waving Pakistani flag and chanting anti-India slogans at a rally in Sringar.
While confirming that the voice in the slideshow was that of Moosa, senior police officials did not rule out the possibility that the banned IS terror group was trying to create a base in the Valley.
Restrictions have been imposed in five police station areas of Srinagar, a police official said.
Kashmiri separatist groups on Sunday met Pakistan Prime Minister Nawaz Sharif's advisor Sartaj Aziz here, drawing a sharp reaction from Bharatiya Janata Party which said the government is committing a "diplomatic blunder" by allowing this.
'I don't know who is deciding Indian foreign policy today. I don't know who is deciding how India deals with Pakistan,' former Union minister Ram Jethmalani takes on the Modi government.
Separatist leader Masarat Alam Bhat on Thursday denied waving Pakistani flag at a rally organised to welcome his senior Syed Ali Shah Geelani in Srinagar, but said it was a representation of the feelings, aspirations and sentiments of the people across Kashmir.
Moderate Hurriyat Conference chairman Mirwaiz Umer Farooq on Saturday blasted his hardline counterpart for accusing him of having a secret meeting with emissaries of Narendra Modi, saying Syed Ali Shah Geelani was making irresponsible statements aimed at creating confusion among people.
Curfew remained in force in entire Srinagar district and Anantnag town on Saturday to thwart the separatists' plan to stage a two-day sit-in in the city centre even as the death toll in the ongoing unrest climbed to 56 in the Valley with the death of a youth injured in firing.
Violent clashes broke out between a group of youths and security forces in parts of the city on Saturday, leaving a youth and a policeman injured in stone pelting as separatist groups called a strike in Srinagar condemning the police action on Jamia Masjid on Friday.
Director General of Police S P Vaid said that Burhan Wani's successor Sabzar Ahmad Bhat is among the two terrorists killed in the encounter in Soimoh area of Tral on Saturday morning.
Curfew continued to cripple the Valley for the tenth day.
Delegations of Kashmiri Pandit organisations on Friday met Union Minister Jitendra Singh seeking the Centre's intervention in allowing a pilgrimage to Kounsarnag Lak in South Kashmir, a day after locals had protested against the event.
Geelani remained under house arrest for the third consecutive day
The right of the accused, as guaranteed by the Constitution, principles of natural justice cannot be denied to the accused indefinitely, it said.
A youth was killed and three others injured as security forces opened fire in Kupwara district of Kashmir to disperse protesters who were pelting stones on an army camp.
There has been a steady rise in the number of youth taking up arms in the Valley since 2014 onwards as compared to 2011, 2012, and 2013.
Javadekar was at the event, where presence of his ministerial colleague V K Singh last year had drawn flak from the media, for around 20 minutes, and extended his 'best wishes' to the Pakistani people on the sidelines.
Mirwaiz Farooq, who is also a Muslim religious head, feels that the Friday meeting of Prime Minister Narendra Modi with his Pakistani counterpart Nawaz Sharif in Lahore has given a fresh hope not only to people of the two nations but to the entire South Asian region.
The state government pointed accusing fingers at separatists, saying they had started the "era of destruction" in Kashmir but were now trying to find an escape route.
A unanimous statement of the delegation appealed to the people of the state to shun the path of violence and resolve all the issues through dialogue and discussion.
"We intend to talk to individuals and groups who want peace and normalcy in Kashmir Valley," Home Minister Rajnath Singh said before the departure of delegation comprising 30 members from 20 parties.
Ahead of the visit of an all-party delegation to Jammu and Kashmir, political parties on Saturday pitched for holding dialogue with "all stakeholders", including Hurriyat, to douse the unrest and banning the use of pellet guns by security forces.
Top Kashmiri separatist leaders, including Syed Ali Shah Geelani and Mirwaiz Umer Farooq, were on Thursday put under house arrest only to be released within hours in actions that were linked to their proposed meeting with Pakistani National Security Advisor Sartaj Aziz in Delhi on Sunday.
Violence continues to scorch south Kashmir following the killing of 'poster-boy' militant Burhan Wani with the death toll going up to 34.
Curfew-like restrictions were imposed on Saturday in parts of Kashmir, including Srinagar city, and Amarnath yatra suspended as authorities apprehended protests in the Valley, where tension prevailed following the killing of Hizbul Mujahideen commander Burhan Wani by security forces.
The re-opening of the state government offices in Srinagar after the annual Darbar Move was marked by citywide shutdown and protests.
Sajjad is the younger son of Hurriyat leader Abdul Gani Lone who was assassinated on May 21, 2002, by militants
Brushing aside the strong opposition to it from separatist leaders, religious heads and some civil society groups, authorities have decided to go ahead with the high profile Zubin Mehta concert in Srinagar on September 7.