The police arrested Jammu and Kashmir Liberation Front (JKLF) Chairman Muhammad Yasin Malik and leader Bashir Ahmad on Friday.
A police party reached the uptown Abi Guzar area of Srinagar and arrested Yasin Malik, sources said.
The separatist leaders have been shifted to the Srinagar Central Jail.
Malik’s arrest comes two days ahead of the main Muharram procession in the valley, on the 10th day of the Muslim month of Muharram, on October 1.
On 27 September, the court had extended the judicial custody of seven Kashmiri separatists arrested on various charges, including receiving funds from Pakistan to sponsor terror activities and stone-pelting in Jammu and Kashmir till 17 October.
District Judge Poonam Bamba extended the judicial custody of Aftab Hilali Shah alias Shahid-ul-Islam, Ayaz Akbar Khandey, Farooq Ahmad Dar alias Bitta Karate, Nayeem Khan, Altaf Ahmad Shah, Raja Mehrajuddin Kalwal, and Bashir Ahmad Bhat alias Peer Saifullah.
On July 24, the National Investigation Agency (NIA) had arrested the seven on charges of criminal conspiracy and waging war against India.
Earlier, separatist leaders Syed Alishah Geelani, Mirwaiz Umar Farooq and Yasin Malik were detained in Srinagar after they tried to moblise a rally to before their departure to Delhi.
The leaders were travelling to Delhi to court arrest outside National Investigation Agency (NIA) headquarters to protest against arrest of seven separatist leaders and house raids on their aides.
(With agency inputs)