Problem related to multiple instances on DB2 V9.5

Hi,

Db2 version 9.5 Fixpack:0 ESE on Linux

Instance db2inst1 exists by default

I am trying to create a new db instance by using steps:

useradd -u 1103 -g db2iadm1 -m -d /home/db2inst2 db2inst2 -p passw0rd

./db2icrt -u db2inst2 db2inst2

Edit the /etc/services file and add the following entry:

db2c_db2inst2 3701/tcp

su - db2inst2
db2 update database manager configuration using svcename db2c_db2inst2
db2stop
db2start

Above steps work.

However I observed that many parameters in dbm cfg point to /home/db2inst1 and new DB created here get created in /home/db2inst1

db2 list db directory lists DBs from /home/db2inst1.

Has anyone encountered this issue and have advise?