Trading got underway on the Tokyo Stock Exchange on Monday after a major restructuring. The goal is to invigorate Japan's economy and attract investment from around the world.

Kiyota Akira, Group CEO of Japan Exchange Group says "We hope listed companies see the market restructuring as an opportunity to press ahead with efforts to increase corporate value."

The TSE has been divided into three segments: Prime, Standard and Growth.

The Prime market is geared toward companies that are internationally competitive. They have higher standards of corporate governance and commitments to sustainable growth.

The listing criteria are more demanding than for companies that were on the first section of the market under the previous structure.

Still, over 1,800 firms, or more than 80 percent of those that were on the first section are now on the Prime market.

Some initially fell short of the listing criteria, but were allowed to join after submitting business improvement plans.

Some companies are looking to improve their ability to raise funds from a wider spectrum of investors.

The Standard Market is for firms expected to grow at a steady pace, despite having lower capitalization than those on the Prime Market.

Over 330 firms have shifted to the Standard Market from the first section under the previous structure. Some believe they can execute bolder business plans than they could on the Prime Market.

Another 1,100 companies transferred from three other segments under the previous structure.

The Growth Market is for startups with high growth potential, but with higher investment risk.

The reorganization comes as competition among stock markets around the world heats up.

The World Federation of Exchanges says the total market capitalization of companies listed on the TSE was 6.1 trillion dollars at the end of February.

That was well below the world's largest market, the New York Stock Exchange, at 26.1 trillion dollars. It is also behind the Shanghai Stock Exchange, at 7.8 trillion dollars.

Daiwa Institute of Research senior researcher Kamio Atsushi says the TSE's reorganization will make it difficult for companies to stay listed unless they achieve sustainable growth.

Kamio says companies have been trying to explain their growth strategies in ways that are easy to understand, with a view to improving shareholder returns. He says competition to provide clearer disclosures "will likely intensify, and this may lift the Japanese market."

But he says investors may question whether companies on the Prime Market that initially failed to meet the listing criteria can achieve their business improvement plans.

He says such firms may need to revise their plans, or provide updates to explain their progress.

Kamio says the market reorganization will likely increase the number of companies entering and leaving the market.

He says businesses will face growing costs in maintaining their listings. "Some companies might weigh the pros and cons, and choose to delist. I think such moves, along with new listings, could lead to an improved market metabolism."

Kamio adds that it will take time for investors to see the effects of the changes. He says their success will depend solely on whether companies live up to investors' expectations.