DNS Settings for a new account

When you create a new account in WHM using Create a New Account form, you have the column called DNS Settings,there you have option called Use the nameservers specified at the Domain's Registrar (ignore locally specified nameservers),if you select this option,then the namesever details for the domain will be fetched from domain registrar database (tld's database) and entred in zone file or db file of the domain.
Don't select this option if you want to point NS entry of the domain to point your server.