Shares of scandal-hit Olympus Corp jumped more than 7 percent in heavy trade on Monday after the Tokyo bourse kept the company listed, but placed it on its security on alert list for firms needing to urgently improve their internal management.

Olympus, the heaviest-traded share by turnover on the main board, rose to 1,286 yen.

Under the Tokyo Stock Exchange's new designation, the camera and endoscope maker will have to submit improvement reports for three years but moves off the bourse's supervisory watchlist, meaning it is in less immediate danger of being delisted, a step that would make it harder to raise capital.

(Reporting By Mari Saito; Editing by Joseph Radford)