I took some of a colleague’s classes while she was overseas. A student from that class is now coming to mine. She said she likes my teaching. She said she told her brother about me, and:
 He said you should join his class.
I was confused. Where is his class and why should I join it? I asked her something along those lines, and she said either:
 He said, “You should join his class”.
 He said I should join your class.
One of the rules of changing direct quotations into indirect ones is pronoun changes, especially I and you. Another is that direct quotations are usually indicated in speech by a slight pause before the quoted words. She hadn’t paused, or hadn’t paused long enough.
Interpreting  as an indirect quotation, as I did, gives:
[1’] “He [brother] said you [teacher] should join his [brother’s] class”.
This is the equivalent of:
 He said, “He should join my class”.
Part of the problem is that there are two males, so he/him/his could be either the brother or me. In  he and his appear to be referring to the same person. In , they are distinguishable by the quotation marks and the pause. If she had been talking to her sister, and then said to me:
 She said you should join his class
I might have had a moment’s hesitation, but I wouldn’t have been confused to the point of asking for clarification.
Indirect quotations are often introduced with the subordinator that:
[1’’] He said that you should join his class.
[4’] He said that I should join your class.
but it can be omitted, and often is in casual speech. I like it, because it’s clear.
My usual class did direct and indirect quotations recently. I counted 11 changes which have to be made, and I’m sure that’s not all. I posted about a previous time I covered indirect quotations.