BY KANA INAGAKI

TOKYO—The Tokyo Stock Exchange said Friday it will keep shares of scandal-hit Olympus Corp. listed, while imposing a maximum, if largely symbolic, fine on the camera maker for damage caused to investor confidence by its financial coverup.

Despite a massive erosion in the Japanese company’s capital caused by the 13-year effort to hide $1.5 billion in investment losses, the exchange concluded that there were no accounting irregularities large enough to “distort” investor judgment to warrant expulsion from the market.

In addition to the ¥10 million ($130,000) fine stemming from one of Japan’s biggest-ever corporate scandals, the TSE put Olympus’s stock …