Elastic band you see is around it (7)
I believe the answer is:
springy
'elastic' is the definition.
(similar in meaning)
'band you see is around it' is the wordplay.
'band' becomes 'ring' (a ring is a band of metal).
'you see' becomes 'spy' (I can't explain this - if you can you should believe this answer much more).
'is around it' is an insertion indicator.
'ring' put within 'spy' is 'SPRINGY'.
Can you help me to learn more?
(Other definitions for springy that I've seen before include "jumpy" , "Elastic, resilient" , "With bounce" .)