.profile not being read from $HOME

[Ned Robie]

We run IN/ix, Interactive Systems' port of System III.  When a program
exec()s /bin/sh with argument 0 set to -sh, .profile is being read from
./.profile instead of $HOME/.profile as documented in every Unix user's
manual that I've looked at.  Is this a documentation problem or a bug?
Do other Unix systems have the same problem?  What is the correct behavior?

Thanks...

-- Ned Robie