The nature of oval defects in compositionally graded InGaAs/GaAs buffer layers has been investigated by means of Transmission electron microscopy (TEM) and Cathodoluminescence (CL). CL spectra show that emissions from within the defects have energies lower than that from the defect-free regions, thus demonstrating that the defects are richer in In than the surrounding matrix. No In particles have been detected within the defect core. TEM investigations reveal that the defects form in the topmost strained regions close to the surface and originate from stacking faults.