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An ad-hoc network is a multi-hop wireless network where all nodes cooperatively maintain network connectivity without a centralized infrastructure. If these nodes change their positions dynamically, it is called a mobile ad-hoc network (MANET). Since the network topology changes frequently, efficient adaptive routing protocols such as AODV, DSR, and NTP are used. As the network is wireless, security becomes the major issue in Mobile Ad hoc Networks. Some of the attacks such as modification, fabrication, impersonation and denial of service attacks are due to misbehavior of malicious nodes, which disrupts the transmission. To avoid such attacks some of cryptographic algorithms and key management schemes are used. There are some existing security protocols such as ARAN, SAODV and SEAD etc and will be compared with the proposed algorithm. In this paper, new key management scheme is implemented in NTP protocol, since Node Transition Probability (NTP) based algorithm provides maximum utilization of bandwidth during heavy traffic with less overhead. NTP determines stable routes using received power, but the packet delivery cannot be guaranteed since it is a non secured protocol. The proposal detects the modification, impersonation attacks and TTL attacks and, avoids the effects of malicious node and determines appropriate measures to discard such malicious nodes in dynamic condition.