The petition in the High Court of Gujarat was filed by investors alleging that winding up of the debt schemes by the fund house was illegal.
"Currently, we are examining the matter and will take appropriate steps as may be required," a Franklin Templeton MF spokesperson said on the stay order.
The fund house in April closed six of its debt funds, citing redemption pressures and lack of liquidity in the bond markets.
These schemes were Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund, and Franklin India Income Opportunities Fund.
Earlier, the Madras High Court had issued notices to Franklin Templeton MF and market regulator Sebi after a petition was filed by an investors group, Chennai Financial Markets Accountability (CFMA), to safeguard nearly Rs 28,000-crore investors' money stuck in six schemes shut down by the fund house.
The court took cognisance of the seriousness of the matter wherein the money of common public is at risk of getting wiped off and asked Sebi to file their reply, along with status report on the actions taken, according to the investors' group.
The investors' group had also said it is separately launching an online petition to bring together all affected investors and the same would be forwarded to the Prime Minister's Office as well as the US parent of the fund house and US markets regulator SEC.
Last month, Franklin Templeton MF said the winding up process will be delayed in the absence of authorisation from investors and further steps will be possible only after seeking a fresh approval from them.