composer: Composer doesn't symlink from the path repository

When adding a path repo to composer.json, Composer doesn’t symlink the requested package from provided path (which is a git clone of the repo), instead, it installs the dist version of the package from GitHub. I tried checking out various tags and branches in the repo, but nothing helps.

My composer.json:

{
    "repositories": [
        { "type": "path", "url": "/home/eddie/repos/netgen/tagsbundle" }
    ],
    "require": {
        "netgen/tagsbundle": "^2.2"
    }
}

Output of composer diagnose:

Checking composer.json: WARNING
No license specified, it is recommended to do so. For closed-source software you may use "proprietary" as license.
Checking platform settings: OK
Checking git settings: OK
Checking http connectivity to packagist: OK
Checking https connectivity to packagist: OK
Checking github.com oauth access: OK
Checking disk free space: OK
Checking pubkeys: 
Tags Public Key Fingerprint: 57815BA2 7E54DC31 7ECC7CC5 573090D0  87719BA6 8F3BB723 4E5D42D0 84A14642
Dev Public Key Fingerprint: 4AC45767 E5EC2265 2F0C1167 CBBB8A2B  0C708369 153E328C AD90147D AFE50952
OK
Checking composer version: OK

When I run this command:

composer install

I get the following output:

Loading composer repositories with package information
Updating dependencies (including require-dev)
Package operations: 50 installs, 0 updates, 0 removals
// Other packages

  - Installing netgen/tagsbundle (2.2.3) Loading from cache

// Various suggestions

Writing lock file
Generating autoload files
ocramius/package-versions:  Generating version class...
ocramius/package-versions: ...done generating version class

And I expected this to happen:

I expected for netgen/tagsbundle package to be symlinked from /home/eddie/repos/netgen/tagsbundle path.