A group of students of Dhaka College has locked clashes with traders in New Market area in the capital leaving several injured.
The clashes broke out on Monday night and continued overnight.
Dhaka College students claimed that one of their classmates was attacked by the traders of New Market on Monday night.
Protesting the incident, hundreds of students from the campus rushed to the spot and attacked the marketplace with locally made weapons.
A number of shops were vandalised and several traders were also physically assaulted in the attack, the students added.
The intense situation persisted for around two and a half hours with chases and counter chases taking place during the time.
In response, the traders soon organised and chased out the students from the market's premise.
Meanwhile, contrary to the claims made by the students, the shop owners said that some students of Dhaka College came to eat at a fast-food shop in New Market.
An altercation ensued as they reportedly tried to leave without paying the bill.
At one point the students started attacking and vandalising the shops, they added.
Ramna Division New Market Zone Assistant Commissioner of Police Sharif Farooquzzaman said "A clash is going on between Dhaka College students and New Market businessmen. We are trying to control the situation but the cause of the clash is not yet known."
Following the incident, all exams at Dhaka College have been postponed.