Violence broke out in the town after an 18-year-old boy was stabbed to death near Anangoor around noon on Sunday.
The police, who have registered murder cases against seven persons, said the situation was brought under control by late evening.
Prohibitory orders under Section 144 of the Code of Criminal Procedure have been imposed in areas in the Kasaragod town and the Vidyanagar police station limits till July 13. Police reinforcements have been deployed.
T.A. Sabith, employed in a cloth store, was stabbed by two motorbike-borne persons, along with five others, in J.P. Colony near Anangoor. Sabith was riding a motorbike from his house at Meepugiri, along with his friend, Raees.
He was injured in the chest and died around half past noon, said officials of the private hospital where he was taken to. The body was first shifted to General Hospital and then to Pariyaram Cooperative Medical College Hospital for a post-mortem examination.
Raees was questioned to identify the culprits, and seven persons were charged under Section 302 (murder) of the Indian Penal Code, the police said.
After the murder, shopkeepers downed the shutters apprehending trouble. Buses and other transport vehicles went off the road. Panic gripped people, especially women, stranded in the town without conveyance. The police have stepped up vigil in sensitive and vulnerable localities.
More police forces, including those from the KAP battalion from Kannur and personnel from other stations in the district, have been requisitioned.
Senior police officials, led by Superintendent of Police, Kannur, Rahul R. Nair, are camping in the town.
Earlier in the day, a group of people forced closure of shops on the old bus station premises.
A mob overturned a car near the taluk office. The mob threw stones at a few buses near the new bus station premises.
The glass panes of two Karnataka State Road Transport Corporation buses were smashed. The mob was dispersed by the police.
Condemns
P. Karunakaran, MP, on Sunday condemned the murder of 18-year old Sabith while he was moving in a motorbike with his friend at Anangaoor locality here. He urged the authorities to initiate stern action to book the culprits involved in the incident.
The murder of the innocent youth during broad daylight was quite unfortunate at a time when Kasaragod was free from such incidents in recent months, he said.
