This paper aims to examine the link between share pledging and stock price crash risk. It mainly concentrates on the share-pledging transactions (such as creation, invocation, and release) of the promoters of the National Stock Exchange (NSE), Delhi listed companies, for the period of 2013 to 2021. The study attempted to examine the effect of the pledge ratio on crash risk while controlling for firm and transaction characteristics. The study reveals that there is a positive correlation between the crash risk and the pledge ratio. Other research questions include the following: The interaction between the crash risk-pledge ratio relationship and the purpose of the pledge is also explored. The findings show that the crash risk increases with the pledge ratio, particularly in cases where share pledging is for personal use. Moreover, this study examines the moderating role of business group affiliation on the connection between pledging and crash risk. The evidence reveals that the crash risk of companies affiliated with the business group is lower in cases involving share pledging. This suggests that they are better at managing risks via the internal capital markets of these firms. Thus, this study is useful for understanding share pledging and crash risk in the Indian context.